The greater the number of different goods available in an economy, the:
a. less likely it is that a double coincidence of wants will exist, and the less likely it is that monetary exchange will develop.
b. less likely it is that a double coincidence of wants will exist, and the more likely it is that monetary exchange will develop.
c. more likely it is that a double coincidence of wants will exist, and the less likely it is that monetary exchange will develop.
d. more likely it is that a double coincidence of wants will exist, and the more likely it is that monetary exchange will develop.
e. more likely it is that individuals are producing only goods they want to consume.
Question 2
The production possibilities frontier of an economy is based on the assumption that the:
a. amount of consumer goods produced in the economy is constant during a given year.
b. quality of labor available in the economy is variable during a given year.
c. patent laws applicable in the economy are constant during a given year.
d. level of technology available in the economy is variable during a given year.
e. economy can either produce capital goods or consumer goods during a given year.
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