Andy can't make a deal with Danny. Andy has a Alex Rodriguez baseball card and would like to trade it to Danny for Danny's Albert Pujols card, but Danny doesn't want a Alex Rodriquez card

Andy's problem illustrates the drawback to a barter system known as A) the specialization problem.
B) the double coincidence of wants problem.
C) the many prices problem.
D) the transactions problem.

B

Economics

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Suppose you obtain a fixed rate mortgage during a period of relatively high inflation. During the next ten years, inflation falls. Are you a winner or a loser due to inflation? Explain why

What will be an ideal response?

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Firms in perfect competition will leave the industry if they

a. suffer short-run losses b. suffer losses, even if they are covering variable costs in the short run c. suffer long-run losses d. earn a normal profit e. earn a zero economic profit

Economics