?The table given below shows the output supplied by a firm and its total cost of production. If the market price is $8.50, the profit-maximizing output and profit are _____. Quantity of output. Total Cost ($) 0 50 10 85 20 150 30 220 40 305 50 455
a. ?40 units and $0, respectively
b. ?40 units and $35, respectively
c. ?50 units and $30, respectively
d.
?0 units and ?$50, respectively
e. ?30 units and $25, respectively
Ans: b. ?40 units and $35, respectively
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The quantity theory of money implies that over the long run, the inflation rate will ________
A) equal the nominal interest rate B) equal the growth rate of M2 minus the growth rate of real output C) equal the growth rate of M2 plus the growth rate of real output D) equal the velocity of money
An auction of the leases to drill for natural gas on about 55,000 acres on the Roan Plateau in western Colorado in August 2008 generated nearly $114 million, a record high for onshore energy lease sales in the lower 48 states
What is going on in the rental market for land? A) There is a decrease in the value of marginal product for an acre on the Roan Plateau, leading to an increase in the equilibrium rental rate. B) There is an increase in the value of marginal product for an acre on the Roan Plateau, leading to a decrease in the equilibrium rental rate. C) There is an increase in the supply of acreage on the Roan Plateau, leading to an increase in the equilibrium rental rate. D) There is an increase in the value of marginal product for an acre on the Roan Plateau, leading to an increase in the equilibrium rental rate.
Money neutrality implies that changes in the money supply have an impact on
A) the unemployment rate. B) interest rates. C) the price level. D) real GDP.
According to the equation of exchange, if the money supply is $800 million, real GDP is $3,000 million, and nominal GDP is $4,000 million, then the velocity of money is equal to:
a. 3.5. b. 1.7. c. 10.3. d. 5. e. 2.