Suppose an Economy Has Two Types of Money -- Gold

question 21

Multiple Choice

Suppose an economy has two types of money -- gold and silver coins -- that are both legal tender but have different non- monetary values. Gresham's law has come into effect when

• A)people use the higher- valued coins for exchange and the lower- valued for savings.
• B)the higher- valued coin is taken out of circulation.
• C)people refuse to use the coins of lesser value.
• D)the value of the coins is in the same ratio as their non- monetary values.
• E)the lower- valued coin is taken out of circulation.

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Definitions:

Population

The entire group of individuals or instances about whom the study is focused, from which a sample may be drawn for analysis.

Census

A comprehensive collection and analysis of data about every member of a population at a specific point in time.

Sample

A subset of a population selected for measurement, observation, or questioning to provide statistical information about the population.

Postal Sampling Frames

The process of using postal addresses as a source or list from which to draw samples for research studies.