The first step in the evolution of money involved the use of _____.
a. physical commodities
b. barter
c. pieces of paper representing claims on physical commodities
d. pieces of paper with no intrinsic value
e. electronic entries representing claims on pieces of paper with no intrinsic value
QUESTION 2An increase in the interest rate will increase the demand for loanable funds.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 3Which of the following is not one of the four anti-competitive activities outlined in the Clayton Act?
a. Price discrimination.
b. Exclusive buyer/seller contracts.
c. Buying a competitor's voting stock.
d. Buying a competitor's plants and equipment.
e. Interlocking boards of directors.
QUESTION 4The earliest type of exchange involved _____.
a. coins
b. barter
c. commodity money
d. fiduciary money
e. fiat money
QUESTION 5During periods of inflation, all prices increase.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 6Under the Clayton Act, which of the following was illegal, even if it was not shown to lessen competition substantially?
a. Price discrimination.
b. Tying contract.
c. Horizontal mergers by stock acquisition.
d. Interlocking directorates.
QUESTION 7Exchange is necessary in an economy if:
a. output is to be produced.
b. output is to be consumed.
c. individuals are self-sufficient.
d. families are self-sufficient.
e. labor is specialized.
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