Question :
Multiple Choice – Section 00: Introduction
1.YouuseU.S.currencytopaytheownerofarestaurantforadeliciousmeal.Thecurrency
a.hasnointrinsicvalue.Theexchangeisanexampleofbarter.
b.hasnointrinsic : 1262029
Multiple Choice – Section 00: Introduction
1.YouuseU.S.currencytopaytheownerofarestaurantforadeliciousmeal.Thecurrency
a.hasnointrinsicvalue.Theexchangeisanexampleofbarter.
b.hasnointrinsicvalue.Theexchangeisnotanexampleofbarter.
c.hasintrinsicvalue.Theexchangeisnotanexampleofbarter.
d.hasintrinsicvalue.Theexchangeisnotanexampleofbarter.
2.Whichofthefollowingisanexampleofbarter?
a.Aparentgivesateenagera$10billinexchangeforherbabysittingservices.
b.Ahomeownergivesanexterminatoracheckfor$50inexchangeforexterminationservices.
c.Abarbergivesaplumberahaircutinexchangefortheplumberfixingthebarber’sleakyfaucet.
d.Alloftheaboveareexamplesofbarter.
3.Adoublecoincidenceofwants
a.isrequiredwhenthereisnoiteminaneconomythatiswidelyacceptedinexchangeforgoodsandservices.
b.isrequiredinaneconomythatreliesonbarter.
c.isahindrancetotheallocationofresourceswhenitisrequiredfortrade.
d.Alloftheabovearecorrect.
4.Considerthefollowingtraderswhomeet.
Bill
hasaneggplant
wantsaheadofcabbage
Tim
hasaheadoflettuce
wantsacucumber
Mike
hasatomato
wantsaneggplant
Amy
hasacucumber
wantsaheadoflettuce
Which,ifany,pairsoftradershasadoublecoincidenceofwants?
a.BillwithMike
b.TimewithAmy
c.BillwithMike,andTimwith Amy
d.BillwithTim,andMikewith Amy
5.Considerfoursurvivorsonanisland.
Ron
hasacookingpot
wantsamachete
Alice
hasamachete
wantsafishingspear
Raymond
hasamachete
wantsacookingpot
Lee
hasafishingspear
wantsacoconut
Whichofthefollowingpairsofsurvivorshasadouble-coincidenceofwants?
a.RonwithAlice,andRonwithLee
b.AlicewithLee
c.RonwithRaymond
d.Noneoftheabovearecorrect.
6.Considerfiveindividualswithdifferentoccupations.
Allen
preparestaxes
wantsribs
Betty
doesdrycleaning
wantscomputerfixed
Calvin
fixescomputers
wantsbread
Diedre
bakesbread
wantstaxesprepared
Eric
barbecuesribs
wantsdrycleaning
Inabartersystemwhichofthefollowingpairshasadoublecoincidenceofwants?
a.AllenandEric
b.DiedreandCalvin
c.BothAandBarecorrect.
d.Noneoftheabovearecorrect.
7.Considerfiveindividualswithdifferentoccupations.
Allen
preparestaxes
wantsribs
Betty
doesdrycleaning
wantscomputerfixed
Calvin
fixescomputers
wantsbread
Diedre
bakesbread
wantstaxesprepared
Eric
barbecuesribs
wantsdrycleaning
Ifthiseconomyhasmoney
a.AllenwillbuyfromBetty
b.BettywillbuyfromCalvin
c.Ericwill buy from Allen
d.Noneoftheabovearecorrect.
8.Considerfivehighschoolstudentsworkingonhomeworkinstudyhall.
Rosie
hasmathhomework
wantssciencehomework
Bob
hasEnglishhomework
wantshistoryhomework
Piper
hasmathhomework
wantssciencehomework
Dewey
hassciencehomework
wantsEnglishhomework
Molly
hassciencehomework
wantsmathhomework
Whichofthefollowingpairsofstudentshasadoublecoincidenceofwants?
a.RosieandPiper
b.PiperandMolly
c.DeweyandMolly
d.BobandDewey
9.Considerfiveindividualswithdifferentoccupations.
Mary
provideslegaladvice
wantsknivessharpened
Clark
growstomatoes
wantslegaladvice
Nathan
styleshair
wantstomatoes
Polly
brewsbeer
wantsknivessharpened
Paul
sharpensknives
wantsbeer
Whichofthefollowingpairsofindividualshasadoublecoincidenceofwants?
a.MaryandClark
b.ClarkandNathan
c.NathanandPolly
d.PollyandPaul
10.Money
a.ismoreefficientthanbarter.
b.makestradeseasier.
c.allowsgreaterspecialization.
d.Alloftheabovearecorrect.
11.Inaneconomythatreliesuponbarter,
a.tradedoesnotrequireadoublecoincidenceofwants.
b.scarceresourcesareallocatedjustaseasilyastheyareineconomiesthatdonotrelyuponbarter.
c.thereisnoitemintheeconomythatiswidelyacceptedinexchangeforgoodsandservices.
d.Alloftheabovearecorrect.
12.Theexistenceofmoneyleadsto
a.greaterspecializationinproduction,butnottoahigherstandardofliving.
b.ahigherstandardofliving,butnottogreaterspecialization.
c.greaterspecializationandtoahigherstandardofliving.
d.neithergreaterspecializationnortoahigherstandardofliving.
13.Asopposedtoapaymentssystembasedonbarter,apaymentssystembasedonmoney
a.requiresadoublecoincidenceofwants.
b.leadstolessspecialization.
c.makestradeslesscostly.
d.Noneoftheaboveiscorrect.
14.Whenwesaythattradeisroundaboutwemeanthat
a.peoplesometimestradegoodsforgoods.
b.tradesrequireadoublecoincidenceofwants.
c.currencyisacceptedprimarilytomakefurthertrades.
d.peoplemustspendtimesearchingfortheproductstheywishtopurchase.
15.Theexistenceofmoney
a.reducesspecialization.
b.makestradeeasier.
c.allowsforbarter.
d.hindersproduction.