A system in which the value of currency issued by the government is based entirely on public faith that the currency will be acceptable in trade is

A household's reservation wage is the ________

A) lowest wage rate at which the household will supply labor B) wage at which the household's labor supply curve bends backward C) wage rate at which the household's income is largest D) highest wage rate at which the household will supply labor

If the government makes a good illegal and then imposes stiffer penalties on illegal drug buyers than on sellers, the price of the good ________ and the quantity ________

A) falls; increases B) rises; decreases C) falls; decreases D) does not change; decreases