What is fiat money? Why is fiat money important in the United States today?
What will be an ideal response?
Fiat (from the Latin for “Let it be done”) money is money that is decreed to be acceptable as payment, regardless of whether or not there is backing by gold, silver, or other precious metals. Money in circulation in the United States (and most other modern economies) today is almost entirely fiat money. Fiat money is valuable only because people believe it is exchangeable for goods and services. It has no intrinsic value.
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Refer to Table 2-5. Does either Estonia or Finland have an absolute advantage and if so, in what product?
A) Estonia has an absolute advantage in lumber. B) Finland has an absolute advantage in both products. C) Finland has an absolute advantage in lumber. D) Estonia has an absolute advantage in cell phones.
The law of increasing opportunity costs implies that a society's production possibilities curve will be a straight line
a. True b. False Indicate whether the statement is true or false