One disadvantage of commodity money is that
A) it cannot be readily converted to gold.
B) its quantity can fluctuate erratically
C) its value does not change.
D) it has no value apart from its use as money.
Ans: B) its quantity can fluctuate erratically
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Figure 9-3
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In Figure 9-3, at $3,000 billion GDP,
A. inventories will be falling, signaling businesses to decrease production. B. inventories will be falling, signaling businesses to increase production. C. planned saving increases planned investment. D. inventories will be accumulating, signaling businesses to increase production.
Accounting costs and economic costs differ because
A. Accounting costs include explicit costs, and economic costs do not. B. Accounting costs exceed economic costs whenever any factor is not paid an explicit wage. C. Accounting costs include implicit costs, and economic costs do not. D. Economic costs include the opportunity costs of all resources used, while accounting costs include actual dollar outlays.