The people of the Island of Yap used stones as a general medium of exchange. Therefore,
A) their economic system was based upon barter.
B) their stones served as money.
C) they had no price system, because prices can't be measured with stones.
D) inflation was impossible.
Question 2
After 2009, the price of tablets fell each year and manufacturers of tablets produced and sold more tablets each year. This result is because the
A) law of supply does not apply to companies in the high-tech sector of the economy.
B) law of demand does not apply to customers in the high-tech sector of the economy.
C) supply curve of tablets shifted rightward.
D) demand curve for tablets shifted leftward.
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