Inmates at the federal penitentiary at Lompoc, California, accepted packages of mackerel in exchange for goods and services. What function do these packages of mackerel perform?
A) They function as a store of value.
B) They function as a medium of exchange.
C) They function as a unit of account.
D) They function as a factor of production.
Ans: B) They function as a medium of exchange.
Economics
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A document that promises to pay specified sums of money on specified dates and is a debt to the issuer is called
A) a bond. B) depreciation. C) a stock. D) net investment. E) gross investment.
Economics
Suppose Carlos has a 60 percent chance of not collecting $100,000 when his rich uncle dies in 10 years. Juanita wants to buy the rights to this possible inheritance from Carlos. How much is the possible inheritance currently worth to Carlos? Assume the interest rate is 9 percent.
A. $25,345. B. $142,042. C. $94,695. D. $16,896.
Economics