Money, Order, Shipping, Trade, Goods and Services, Principles of Macroeconomics Final Quiz
The key terms in this Principles of Macroeconomics course include Goods, Money, Voluntary Exchange, Goods and Services, Order, Shipping, Increase, Trade-Offs, Opportunity Cost, Principles of Macroeconomics, Final Quiz
What is the term for the voluntary exchange of goods and services between two or more parties?
trade-offs
specialization
trade
opportunity cost
Explanation:
Trade is the voluntary exchange of goods and services between two or more parties.
What role does money play in the circular flow model?
It increases the efficiency of a market.
It increases the need for a barter economy.
It allows the households to bribe the firms into giving them what they want.
It increases the chances of having a double coincidence of wants other than money.
Explanation:
Instead of bartering for goods and services, people use money to make transactions more likely since goods can be exchanged for money rather than only other goods. Money acts as a medium of exchange, enabling the economy to avoid the double-coincidence-of-wants problem.
You order a $20 sweatshirt online for a Father’s Day gift. The shipping charge is $10. You can get free shipping if your order totals $25 or more. Consequently, you order a $5 bobble head doll, even though neither you nor your father really likes bobble head dolls. This is an example of
opportunity cost.
incentives.
trade-offs.
macroeconomics.
Explanation:
Spending $25 gets you free shipping. If shipping on the $20 item is greater than $5, you may find something else to buy for $5, even if it is something you may not want. This is an example of incentives, because the web site offers you an incentive to spend more in order to save on shipping costs.
What is the term for the voluntary exchange of goods and services between two or more parties?
trade-offs
specialization
trade
opportunity cost
Explanation:
Trade is the voluntary exchange of goods and services between two or more parties.
What role does money play in the circular flow model?
It increases the efficiency of a market.
It increases the need for a barter economy.
It allows the households to bribe the firms into giving them what they want.
It increases the chances of having a double coincidence of wants other than money.
Explanation:
Instead of bartering for goods and services, people use money to make transactions more likely since goods can be exchanged for money rather than only other goods. Money acts as a medium of exchange, enabling the economy to avoid the double-coincidence-of-wants problem.
You order a $20 sweatshirt online for a Father’s Day gift. The shipping charge is $10. You can get free shipping if your order totals $25 or more. Consequently, you order a $5 bobble head doll, even though neither you nor your father really likes bobble head dolls. This is an example of
opportunity cost.
incentives.
trade-offs.
macroeconomics.
Explanation:
Spending $25 gets you free shipping. If shipping on the $20 item is greater than $5, you may find something else to buy for $5, even if it is something you may not want. This is an example of incentives, because the web site offers you an incentive to spend more in order to save on shipping costs.