The Government Has Been Considering Doing Away with Minting Pennies

question 15

Multiple Choice

The government has been considering doing away with minting pennies because they are rarely used for purchases (with most people collecting them or throwing them away) .How would an economist best explain this?

• A) More people are using credit and debit cards, so they are not in the habit of using monetary change.
• B) Prices have increased over time, and it would take far too many pennies to buy anything of value.
• C) Prices have increased over time, and the opportunity cost of carrying around large quantities of pennies has become too large.
• D) Prices have increased over time, and the opportunity cost of carrying around pennies has fallen.
• E) People who use pennies probably aren't spending enough money; removing the penny will force people to spend more.

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Definitions:

Eliminated

Removed or gotten rid of completely.

Group Boycotts

A collective refusal by a group of businesses or individuals to deal with a particular company or person in order to pressure them or to punish them.

Per Se Violations

Actions or behaviors that are automatically deemed illegal or against regulations without the need for further demonstration of harm or intent.

Sherman Act

A landmark federal statute in the antitrust law of the United States that prohibits monopolistic practices and promotes competition.