Which set of prices would you expect to see (posted, quoted) in a barter economy?
A) 1 horse = 10 pieces of gold; 1 kettle = 1 piece of gold
B) 1 horse = 10 kettles; 1 kettle = 1/10 horse
C) 1 horse = $200; 1 kettle = $20
D) 1 horse = 10 kettles; 1 kettle = 10 apples; 1 apple = 1 orange
E) b and d
E
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Buyer Power Nora's Nicest Knick Knacks has sold a variety of products to hundreds of small retailers. Over time, she has added distributers who have a talent for finding more retailers for Nora. Now, over half of her sales go through just two of these
distributers. Rather than making periodic orders as stock gets low, these distributers make only a few large purchases each year. How can these aspects of her buyer relationships affect how much of the value she creates that she gets to capture?
Which of the following policies would be advocated by someone who wants the government to follow an active stabilization policy when the economy is experiencing severe unemployment?
a. decrease the money supply b. increase government expenditures c. increase taxes d. All of the above are correct.