Money facilitates trade because

a. it eliminates the need for specialization
b. it prevents people from taking advantage of each other
c. it serves as a medium of exchange
d. division of labor allows money to be produced at a lower cost
e. people do not benefit from barter unless money is used

C

Economics

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The long-run aggregate supply curve is upward sloping (rather than vertical) in the short-run due to

A. sticky wages B. sticky employment C. sticky interest rates D. sticky output

Economics

The domestic market failure argument is a particular case of the theory of

A) the optimum, or first-best. B) the second best. C) the third best. D) the sufficing principle. E) the efficiency case for free trade.

Economics