1)Which of the following is not an aspect of a fiat system?

a)The central bank has a monopolistic right to print money.

b)Money can be created through fractional reserve banking.

c)The exchange rate is always fixed against other currencies.

d)Money has no intrinsic value.

1)Which of the following statements about taxes is least true?

a)Tariffs can be called a tax.

b)Progressive taxes are generally deemed to be more fair than regressive taxes.

c)Progressive taxes include income tax.

d)Countries with generous social welfare benefits generally have lower rates of tax.

1)Why are rents considered payments to a factor of production owned by households when corporations own all the largest pieces of real estate?

a)The income earned by owners of land and other resources is called rent.When that income is earned by a corporation, it is not part of the circular flow of income.

b)The income earned by owners of land and other resources is called rent.When that income is earned by a corporation, it flows to Firms (F), rather than Households (H).

c)The income earned by owners of land and other resources is called rent.This ultimately is paid to Households (H), since individuals are the ultimate owners of all assets.

d)The income earned by owners of land and other resources is called rent.When that income is earned by a corporation, it is called a lease.

1)Some people think Bitcoin is a pyramid scheme and not an intrinsically valuable investment.From a macroeconomic point of view, what is their best argument?

a)The price of a Bitcoin has been highly volatile over time.

b)Bitcoin is a front for illegal activity.

c)Bitcoin has no underlying asset backing it.

d)Very few merchants accept bitcoin as payment.