1A) When inflation occurs: a. both creditors and debtors benefit b. both credito

Question

1A) When inflation occurs:

a. both creditors and debtors benefit

b. both creditors and debtors are hurt

c. debtors are hurt, but creditors benefit

d. creditors are hurt, but debtors benefit

1B) Which of the following transactions would be counted toward this year's GDP?

a) General Motors purchases 10,000,000 tires from Firestone

b) A three-hundred-year-old painting is sold for $12 million

c) A street gang earns $2 million from selling illegal drugs

d) Your real estate agent earns $5,000 commission when you sell your hundred-year-old house for $100,000

1C) Although paper can be used as money, it suffers one weakness compared to other forms of money:

a) it cannot be easily divided

b) it cannot be stored

c) it cannot be used as "unit of account"

d) it has no value in itself

1A) When inflation occurs:

a. both creditors and debtors benefit

b. both creditors and debtors are hurt

c. debtors are hurt, but creditors benefit

d. creditors are hurt, but debtors benefit

1B) Which of the following transactions would be counted toward this year's GDP?

a) General Motors purchases 10,000,000 tires from Firestone

b) A three-hundred-year-old painting is sold for $12 million

c) A street gang earns $2 million from selling illegal drugs

d) Your real estate agent earns $5,000 commission when you sell your hundred-year-old house for $100,000

1C) Although paper can be used as money, it suffers one weakness compared to other forms of money:

a) it cannot be easily divided

b) it cannot be stored

c) it cannot be used as "unit of account"

d) it has no value in itself

Explanation / Answer

1 A) Answer:- Creditors are hurt, but debtors benefit. (Option d)

1 B) Answer:- Your real estate agent earns $5,000 commission when you sell your hundred-year-old house for $100,000. (Option d)

1 C) Answer:- it has no value in itself. (Option d)

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