What primary function is money serving when you keep it in a bank account until you need it to purchase a product?
A. A double coincidence of wants.
B. A medium of exchange.
C. A unit of account.
D. A store of value.
Answer: D
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Mary takes 4 minutes to make a sandwich and 6 minutes to mix a cocktail. Her sister Ash takes 4 minutes to make a sandwich and 4 minutes to mix a cocktail. Calculate each sister's opportunity cost
Which of the two sisters has an absolute advantage in making sandwiches? In mixing cocktails? Which of the two has a comparative advantage in making sandwiches? In mixing cocktails?
According to the Global Watch, a recent study on Chilean bus drivers revealed that drivers who are paid by the number of passengers rather than by the hour were far more productive because: a. bus drivers do not like to work that hard
b. bus drivers are responding to average costs. c. bus drivers don't like to work on the clockâgetting paid by the hour. d. bus drivers, like most of us, respond to incentives.