In the above figure, Brendan originally consumes at point A. If his income falls and compact discs are a normal good but haircuts are an inferior good then he will begin consuming at a point such as

One of the benefits of money as a medium of exchange is that

A) it allows individuals to compare the relative value of goods. B) it allows for specialization that leads to economic efficiencies. C) over time it will become more valuable so that individuals can purchase more goods and services. D) it allows for private transactions such as trading vegetables for medical services.

Refer to the information provided in Figure 2.4 below to answer the question(s) that follow. Figure 2.4According to Figure 2.4, an increase in unemployment may be represented by the movement from

A. B to A. B. A to C. C. C to D. D. B to D.