Suppose you use your debit card to buy soda from a soda machine. Which of the following is true regarding the transaction?
A) The debit card is not money; it's only an instruction to make a loan.
B) The debit card is money; your use reflects the exchange of a good.
C) The debit card is not money; its use is only a tool to cause money to move from your account.
D) Your use makes the debit card money, as funds are transferred between your account and the machine owner.
E) Using the debit card is like using a check and is, therefore, money.
C
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Typically a firm's economic profit will be
A) greater than its accounting profit. B) less than its accounting profit. C) equal to its accounting profit. D) equal to its accounting profit minus its tax liability. E) equal to its accounting profit plus the market value of any unsold inventory.
When a country has a lower opportunity cost in producing a good than any other country,
A. It necessarily has an absolute advantage in producing the good. B. Consumption possibilities will increase with specialization and trade. C. It has favorable terms of trade in producing the good. D. Production possibilities are no longer limited.