Barter can best be defined as:
a. the direct exchange of one good for money.
b. the direct exchange of money for a good.
c. the direct exchange of goods and services without the use of money.
d. the direct exchange of labor services for wages.
e. the payment of interest on a savings account.
Question 2The production possibilities curve marks the boundary between attainable and unattainable combinations of output.
a. True
b. False
Indicate whether the statement is true or false
Question 3Because of fixed interest rates, there is no risk involved with holding corporate bonds.
a. True
b. False
Indicate whether the statement is true or false
Question 4Most markets involve the use of money for transactions because:
a. goods and services can be exchanged more easily with money than without it.
b. goods and services cannot be exchanged without money.
c. using money requires a double coincidence of wants.
d. the transaction costs of using money are very high.
e. the value of money remains same across countries over time.
Question 5An economy that has many unemployed workers and idle factories is not operating efficiently.
a. True
b. False
Indicate whether the statement is true or false
Question 6A bank is an example of a financial intermediary.
a. True
b. False
Indicate whether the statement is true or false
Question 7Money exchanges are more efficient than barter because:
a. money exchanges do not require a double coincidence of wants.
b. the government guarantees the value of money.
c. money usually has an intrinsic value.
d. money is backed by a physical commodity.
e. opportunity costs are higher with barter trades.
Question 8High wage countries like the United States tend to use less labor-intensive production methods than low wage countries like Mexico.
a. True
b. False
Indicate whether the statement is true or false
Question 9How does opportunity cost to education contribute to low school enrollments in developing countries?
Question 10Margaret can use her quarterly savings to buy a teakwood study table for her room or spend it on a small Christmas party with her family. The _____ cost of her enjoyment at the Christmas party would then equal the forgone utility of the study table.
a. transaction
b. exchange
c. opportunity
d. direct
e. sunk
Question 11Capital-intensive production techniques tend to be utilized most commonly in countries where labor is relatively cheap.
a. True
b. False
Indicate whether the statement is true or false
Question 12According to Malthus, how do economic growth and population relate to each other?
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