Dollar bills in the modern economy serve as money because
A) they can be redeemed for gold by the Federal Reserve.
B) they are backed by the gold stored in Fort Knox.
C) they have value as a commodity independent of their use as money.
D) people have confidence that others will accept them as money.
D
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Tyler's wage rises and he chooses to increase the number of hours he supplies to the labor market. What does this imply about the relative sizes of the substitution effect and the income effect? Explain
What will be an ideal response?
When there is a binding price floor
A) there is no equilibrium. B) the quantity demanded does not equal the quantity supplied. C) all potential producers are happy because they can sell the good at a higher price. D) the government is helping consumers at the expense of producers.