Explain why it is not necessary for paper money to be backed by some commodity (e.g. gold) before it can have value
The U.S. money supply is no longer backed by gold, but that does not mean that it does not have value. It is the general acceptability of paper money that gives it value. As long as sellers continue to accept paper money as payment in exchange for goods and services that are valuable, the paper money will continue to have value.
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A monopsony pays a wage rate that is
A) greater than value of marginal product. B) equal to the marginal cost of labor. C) less than value of marginal product. D) unacceptable to the workers hired.
Hailey worked for Autonation and was laid off when car sales fell during a recession with falling incomes. This is an example of
A. cyclical unemployment. B. seasonal unemployment. C. frictional unemployment. D. structural unemployment.