The purchase of a virtual item from an online company with a virtual currency causes the nation's:
a. Monetary base to rise.
b. M2 money multiplier to fall.
c. M2 money multiplier to remain the same.
d. M2 money supply to fall.
.C
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When economists use market values to aggregate output, they sum the:
A. number of items produced. B. quantity of items produced. C. inputs of each item produced. D. price times the quantity of each item produced.
Two countries, A and B, produce Good X. Which of the following statements is true of the trading price of Good X?
A) The trading price of Good X is less than the opportunity cost of producing the good in both nations. B) The trading price of Good X is greater than the opportunity cost of producing the good in both nations. C) The trading price of Good X lies between the opportunity costs of producing the good in both nations. D) The trading price of Good X is always equal to the opportunity cost of producing the good in Country A.
The short-run refers to a period
a. of a few days. b. when prices and wages cannot fully adjust. c. of a few years. d. during which trend cannot change. e. of analysis used in the classical model
The U.S. government currently imposes a $0.54 per gallon tariff on all ethanol imported into the country. If this tariff were removed, then:
A) the domestic ethanol price falls. B) the domestic quantity of ethanol supplied declines. C) domestic consumer surplus increases. D) domestic producer surplus decreases. E) all of the above