The use of money as a unit of account:
a. discourages specialization and division of labor.
b. inhibits the exchange of goods and services.
c. makes it difficult to compare the relative values of goods and services.
d. lowers information costs relative to barter.
e. relies on the existence of a double coincidence of wants.
d
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Were the price of gasoline to permanently increase by 10% overnight and stay there for the foreseeable future. Other things constant,
A) the demand for gasoline would fall immediately. B) the quantity demanded for gasoline would fall immediately. C) the quantity demanded for gasoline would fall more dramatically over time D) the quantity demanded for gasoline would remain unchanged, because cars can only be run on gasoline.
Jamar used to work as an office manager, earning $40,000 per year. He gave up that job to start a life-coaching business. In calculating the economic profit of his life-coaching business, the $40,000 income that he gave up is counted as part of the life-coaching business's
a. total revenue. b. opportunity costs. c. explicit costs. d. marginal costs.