Suppose you purchase a bottle of vitamin water with a price of $3. The price of $3 best reflects the function of money as a ________, and when you take $3 out of your wallet to purchase the bottle, money is functioning as a ________
A) medium of exchange; standard of deferred payment
B) store of value; unit of account
C) unit of account; medium of exchange
D) medium of exchange; store of value
C
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According to the text, an open economy is likely to have all the following EXCEPT
A) relatively more rapid spread of ideas. B) relatively more trade barriers. C) high technological progress. D) high economic growth.
Assume that a house is rented by four students. When it comes to keeping the house clean, each of the four roommates has an incentive to leave cleaning to the others. As a result, the house is never clean
Which of the following is the best solution to this problem of free riding? A) Assign one roommate the responsibility to keep a watch over the other students B) Require every roommate to contribute to a cleaning service C) Ask every roommate to clean the house if they dirty it D) Require each roommate to pay more toward the house rent and groceries