The Figure Given Below Represents the PPC in Two Nations

question 63

Multiple Choice

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4

-Most markets involve the use of money for transactions because:

• A)goods and services can be exchanged more easily with money than without it.
• B)goods and services cannot be exchanged without money.
• C)using money requires a double coincidence of wants.
• D)the transaction costs of using money are very high.
• E)the value of money remains same across countries over time.

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Definitions:

Contractionary Policy

Economic policy measures aimed at reducing spending or increasing taxes to slow down an overheating economy.

U.S. President

The U.S. President is the head of state and head of government of the United States, and is responsible for the executive branch of the federal government.

Real Wages

Wages adjusted for inflation, representing the purchasing power of income earned from labor.

Labor Markets

The supply and demand for labor, where employers seek to hire workers and workers seek employment.