In a fiduciary monetary system, the value of the money issued by a government is based on
A. public confidence in that currency's acceptability and predictability of value.
B. the gold held in that government's vaults.
C. its being made out of some material with a market value equal to a bill's face value.
D. the ability to convert it to some valuable commodity.
Answer: A
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The Lorenz curves in the above figure imply that
A) income is distributed more unequally than wealth. B) wealth is distributed more unequally than income. C) both wealth and income are distributed equally. D) both wealth and income are distributed at the same level of inequality.
A subsidy to carrot farmers will
A) increase the quantity of carrots demanded. B) decrease the quantity of carrots supplied. C) increase the supply of carrots. D) leave both the supply and demand of carrots unchanged.