Solved by verified expert :9)
Fundamentally, to reap the benefits of
specialization, an economy must
A)
be heavily industrial.
B)
be heavily agricultural.
C)
have an extensive system of higher
education.
D)
develop ways for individuals to trade
goods with one another.
10)
Barter is
A)
another name for money.
B)
an exchange of goods and services directly
for goods and services.
C)
the basis for economic specialization.
D)
the main system of exchange in the United States
today.
11)
Under a system of barter
A)
each individual trades output directly
with another.
B)
only agricultural goods may be traded.
C)
goods may be traded for money, but money
may not be traded for goods.
D)
currency is accepted for purchases, but
personal checks are not.
12)
Which of the following is an example of a
barter transaction?
A)
An individual pays her electric bill with
a check.
B)
An individual pays her electric bill with
currency.
C)
An individual provides three light bulbs
to her neighbor in exchange for two gallons of milk.
D)
An individual deposits three twenty-dollar bills in her checking account.
13)
In a barter system individuals
A)
find it impossible to specialize.
B)
must be entirely self-sufficient.
C)
find it difficult to specialize, but may
be able to do so.
D)
will almost invariably specialize.
14)
A system of barter has substantial
transactions costs because
A)
taxes under such a system are generally a
large fraction of the value of output.
B)
traders must spend considerable time
searching for trading partners.
C)
the uncertainties of trade result in high
legal fees being incurred to draw up binding contracts.
D)
the uncertainties of trade result in high
insurance premiums.
