Money as a medium of exchange I. Facilitates the exchange of goods II. Reduces the incentive to ...

Money as a medium of exchange I. Facilitates the exchange of goods II. Reduces the incentive to barter
 
  A) I only
  B) II only
  C) Both I and II
  D) Neither I nor II

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Ques. 2

A monopolistic competitor would face a demand curve with a
 
  A) positive slope.
  B) negative slope.
  C) constant slope.
  D) slope equal to 0.

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Ques. 3

John Maynard Keynes developed his economic theories in the
 
  A) 1870s.
  B) 1900s.
  C) 1930s.
  D) 1960s.

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Ques. 4

If regulators disallow price increases requested by a natural monopoly that is currently earning an economic loss, quality of service will
 
  A) increase rapidly.
  B) likely fall.
  C) remain unchanged.
  D) none of the above.

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Ques. 5

Free trade is viewed as key to economic development because
 
  A) it encourages a faster spread of technology.
  B) it encourages a country's exports only.
  C) it brings in expensive new technology.
  D) none of the above is correct.

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Ques. 6

A positive economic statement is always true and a normative economic statement is always false. Do you agree or disagree with this statement? Explain.
 
  What will be an ideal response?