Which of the statements below best explains how the use of money in an economy adds to the wealth of the society using it? Money creates wealth
A) because it is capital.
B) by earning interest.
C) by making specialization less costly.
D) insofar as it is invested rather than consumed.
C
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An economic system
a. must answer the three economic questions to the satisfaction of everyone in society b. must not allow some members of society to gain an unfair advantage when answering the three economic questions c. must choose pure capitalism to adequately answer the three economic questions d. is a set of social institutions and mechanisms organized to answer the three economic questions e. can address problems of scarcity only by embracing the social institution of private property
The term "deadweight loss" or "excess burden" is used to describe the
a. expenditures on exercise and weight-reducing programs by individuals who are overweight. b. loss from the elimination of mutually beneficial exchanges that results from the imposition of a tax in a market. c. difference between the value consumers place on a good and the price they have to pay for it. d. reduction in consumer welfare that occurs when the firms in a market make a profit.