Question 1

A double coincidence of wants

Accepted Answer

A) is required when there is no item in an economy that is widely accepted in exchange for goods and services. 
B) is required in an economy that relies on barter. 
C) is a hindrance to the allocation of resources when it is required for trade. 
D) All of the above are correct. 
A) is required when there is no item in an economy that is widely accepted in exchange for goods and services. 
B) is required in an economy that relies on barter. 
C) is a hindrance to the allocation of resources when it is required for trade. 
D) All of the above are correct. D

Question 2

Which of the following is an example of barter?

Accepted Answer

A) A parent gives a teenager a $10 bill in exchange for her babysitting services. 
B) A homeowner gives an exterminator a check for $50 in exchange for extermination services. 
C) A barber gives a plumber a haircut in exchange for the plumber fixing the barber's leaky faucet. 
D) All of the above are examples of barter. 
A) A parent gives a teenager a $10 bill in exchange for her babysitting services. 
B) A homeowner gives an exterminator a check for $50 in exchange for extermination services. 
C) A barber gives a plumber a haircut in exchange for the plumber fixing the barber's leaky faucet. 
D) All of the above are examples of barter. C

Question 3

When we say that trade is roundabout we mean that

Accepted Answer

A) people sometimes trade goods for goods. 
B) trades require a double coincidence of wants. 
C) currency is accepted primarily to make further trades. 
D) people must spend time searching for the products they wish to purchase. 
A) people sometimes trade goods for goods. 
B) trades require a double coincidence of wants. 
C) currency is accepted primarily to make further trades. 
D) people must spend time searching for the products they wish to purchase. C

Question 4

The existence of money leads to

Accepted Answer

A) greater specialization in production,but not to a higher standard of living. 
B) a higher standard of living,but not to greater specialization. 
C) greater specialization and to a higher standard of living. 
D) neither greater specialization nor to a higher standard of living. 
A) greater specialization in production,but not to a higher standard of living. 
B) a higher standard of living,but not to greater specialization. 
C) greater specialization and to a higher standard of living. 
D) neither greater specialization nor to a higher standard of living.

Question 5

Consider five individuals with different 
 
If this economy has money

Accepted Answer

A) Allen will buy from Betty 
B) Betty will buy from Calvin 
C) Eric will buy from Allen 
D) None of the above are correct. 
A) Allen will buy from Betty 
B) Betty will buy from Calvin 
C) Eric will buy from Allen 
D) None of the above are correct.

Question 6

David and Asher buy the same pair of sneakers,but each in the wrong size.David proposes a size swap with Asher.This is an example of

Accepted Answer

A) ​barter,since the sneakers in the correct size represent a medium of exchange. 
B) ​barter,since the sneakers in the correct size have intrinsic value to both David and Asher. 
C) ​money,since the sneakers in the correct size do not have any intrinsic value. 
D) money,since the sneakers in the correct size represent a medium of exchange. 
A) ​barter,since the sneakers in the correct size represent a medium of exchange. 
B) ​barter,since the sneakers in the correct size have intrinsic value to both David and Asher. 
C) ​money,since the sneakers in the correct size do not have any intrinsic value. 
D) money,since the sneakers in the correct size represent a medium of exchange.

Question 7

The existence of money

Accepted Answer

A) reduces specialization. 
B) makes trade easier. 
C) allows for barter. 
D) hinders production. 
A) reduces specialization. 
B) makes trade easier. 
C) allows for barter. 
D) hinders production.

Question 8

Consider the following traders who meet.
 
Which,if any,pairs of traders has a double coincidence of wants?

Accepted Answer

A) Bill with Mike 
B) Tim with Amy 
C) Bill with Mike,and Tim with Amy 
D) Bill with Tim,and Mike with Amy 
A) Bill with Mike 
B) Tim with Amy 
C) Bill with Mike,and Tim with Amy 
D) Bill with Tim,and Mike with Amy

Question 9

Consider four survivors on an island.
 
Which of the following pairs of survivors has a double-coincidence of wants?

Accepted Answer

A) Ron with Alice,and Ron with Lee 
B) Alice with Lee 
C) Ron with Raymond 
D) None of the above are correct. 
A) Ron with Alice,and Ron with Lee 
B) Alice with Lee 
C) Ron with Raymond 
D) None of the above are correct.

Question 10

Money

Accepted Answer

A) is more efficient than barter. 
B) makes trades easier. 
C) allows greater specialization. 
D) All of the above are correct. 
A) is more efficient than barter. 
B) makes trades easier. 
C) allows greater specialization. 
D) All of the above are correct.

Question 11

As opposed to a payments system based on barter,a payments system based on money

Accepted Answer

A) requires a double coincidence of wants. 
B) leads to less specialization. 
C) makes trades less costly. 
D) None of the above is correct. 
A) requires a double coincidence of wants. 
B) leads to less specialization. 
C) makes trades less costly. 
D) None of the above is correct.

Question 12

Consider five individuals with different occupations.
 
In a barter system which of the following pairs has a double coincidence of wants?

Accepted Answer

A) Allen and Eric 
B) Diedre and Calvin 
C) Both A and B are correct. 
D) None of the above are correct. 
A) Allen and Eric 
B) Diedre and Calvin 
C) Both A and B are correct. 
D) None of the above are correct.

Question 13

Consider five individuals with different  
Which of the following pairs of individuals has a double coincidence of wants?

Accepted Answer

A) Mary and Clark 
B) Clark and Nathan 
C) Nathan and Polly 
D) Polly and Paul 
A) Mary and Clark 
B) Clark and Nathan 
C) Nathan and Polly 
D) Polly and Paul

Question 14

Diana tutors Tiago for two hours before his economics final exam.Tiago pays Diana through a direct transfer from his bank on a payment app.Diana then uses her debit card to buy pizza for dinner from the local pizza parlor.This is an example of

Accepted Answer

A) ​the exchange of money facilitating production and trade. 
B) trade between two people who each have a good or service that the other wants. 
C) ​an inefficient allocation of scarce resources. 
D) ​the creation of money through monetary policy. 
A) ​the exchange of money facilitating production and trade. 
B) trade between two people who each have a good or service that the other wants. 
C) ​an inefficient allocation of scarce resources. 
D) ​the creation of money through monetary policy.

Question 15

In an economy that relies upon barter,

Accepted Answer

A) trade does not require a double coincidence of wants. 
B) scarce resources are allocated just as easily as they are in economies that do not rely upon barter. 
C) there is no item in the economy that is widely accepted in exchange for goods and services. 
D) All of the above are correct. 
A) trade does not require a double coincidence of wants. 
B) scarce resources are allocated just as easily as they are in economies that do not rely upon barter. 
C) there is no item in the economy that is widely accepted in exchange for goods and services. 
D) All of the above are correct.

Question 16

You use U.S.currency to pay the owner of a restaurant for a delicious meal.The currency

Accepted Answer

A) has no intrinsic value.The exchange is an example of barter. 
B) has no intrinsic value.The exchange is not an example of barter. 
C) has intrinsic value.The exchange is not an example of barter. 
D) has intrinsic value.The exchange is not an example of barter 
A) has no intrinsic value.The exchange is an example of barter. 
B) has no intrinsic value.The exchange is not an example of barter. 
C) has intrinsic value.The exchange is not an example of barter. 
D) has intrinsic value.The exchange is not an example of barter

Question 17

Consider five high school students working on 
 
Which of the following pairs of students has a double coincidence of wants?

Accepted Answer

A) Rosie and Piper 
B) Piper and Molly 
C) Dewey and Molly 
D) Bob and Dewey 
A) Rosie and Piper 
B) Piper and Molly 
C) Dewey and Molly 
D) Bob and Dewey

Exam 16: The Monetary System

A double coincidence of wants

Which of the following is an example of barter?

When we say that trade is roundabout we mean that

The existence of money leads to

Consider five individuals with different If this economy has money

David and Asher buy the same pair of sneakers,but each in the wrong size.David proposes a size swap with Asher.This is an example of

The existence of money

Consider the following traders who meet. Which,if any,pairs of traders has a double coincidence of wants?

Consider four survivors on an island. Which of the following pairs of survivors has a double-coincidence of wants?

Money

As opposed to a payments system based on barter,a payments system based on money

Consider five individuals with different occupations. In a barter system which of the following pairs has a double coincidence of wants?

Consider five individuals with different Which of the following pairs of individuals has a double coincidence of wants?

Diana tutors Tiago for two hours before his economics final exam.Tiago pays Diana through a direct transfer from his bank on a payment app.Diana then uses her debit card to buy pizza for dinner from the local pizza parlor.This is an example of

In an economy that relies upon barter,

You use U.S.currency to pay the owner of a restaurant for a delicious meal.The currency

Consider five high school students working on Which of the following pairs of students has a double coincidence of wants?

Ten Principles of Economics

Ten Principles of Economics: How People Make Decisions

Ten Principles of Economics: How People Interact

Ten Principles of Economics: How the Economy As a Whole Works

Ten Principles of Economics: Part A

Ten Principles of Economics: Part B

Thinking Like an Economist

Thinking Like an Economist: The Economist As Scientist

Thinking Like an Economist: The Economist As Policy Adviser

Thinking Like an Economist: Why Economists Disagree

Thinking Like an Economist: Lets Get Going

Thinking Like an Economist: Graphing a Brief Review

Thinking Like an Economist: Part A

Thinking Like an Economist: Part B

Interdependence and the Gains From Trade

Interdependence and the Gains From Trade: A Parable for the Modern Economy

Interdependence and the Gains From Trade: Comparative Advantage the Driving Force of Specialization

Interdependence and the Gains From Trade: Applications of Comparative Advantage

Interdependence and the Gains From Trade: Conclusion

Interdependence and the Gains From Trade: Part A

Interdependence and the Gains From Trade: Part B

The Market Forces of Supply and Demand

The Market Forces of Supply and Demand:Markets and Competition

The Market Forces of Supply and Demand: Demand

The Market Forces of Supply and Demand: Supply

The Market Forces of Supply and Demand: Supply and Demand Together

The Market Forces of Supply and DemandConclusion How Prices Allocate Resources

The Market Forces of Supply and Demand: Part A

The Market Forces of Supply and Demand: Part B

Elasticity and Its Applications

Elasticity and Its Applications: The Elasticity of Demand

Elasticity and Its Applications: The Elasticity of Supply

Elasticity and Its Applications: Three Applications of Supply,demand,and Elasticity

Elasticity and Its Applications: Part A

Elasticity and Its Applications: Part B

Supply Demand and Government Policies

Supply Demand and Government Policies: Controls on Prices

Supply Demand and Government Policies: Taxes

Supply Demand and Government Policies: Part A

Supply Demand and Government Policies: Part B

Consumers Producers and the Efficiency of Markets

Consumers Producers and the Efficiency of Markets: Consumer Surplus

Consumers Producers and the Efficiency of Markets: Producer Surplus

Consumers Producers and the Efficiency of Markets: Market Efficiency

Consumers Producers and the Efficiency of Markets: Conclusion Market Efficiency and Market Failure

Consumers Producers and the Efficiency of Markets: Part A

Consumers Producers and the Efficiency of Markets: Part B

Application the Cost of Taxation

Application the Cost of Taxation: The Deadweight Loss of Taxation

Application the Cost of Taxation: The Determinants of the Deadweight Loss

Application the Cost of Taxation: Deadweight Loss and Tax Revenue As Taxes Vary

Application the Cost of Taxation: Conclusion

Application the Cost of Taxation: Part A

Application the Cost of Taxation: Part B

Application International Trade

Application International Trade: The Determinants of Trade

Application International Trade: The Winners and Losers From Trade

Application International Trade: The Arguments for Restricting Trade

Application International Trade: Conclusion

Application International Trade: Part A

Application International Trade: Part B

Measuring a Nations Income