The money price of a good is that price
A) expressed in constant 2017 dollars.
B) expressed in purchasing power against a common item like bread.
C) expressed in today's dollars.
D) that would clear the market.
Answer: C
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The Law of Diminishing Marginal Benefit states that:
A) the demand for a commodity declines as its price increases. B) the demand for a commodity is more dependent on income than on price. C) the willingness to pay for an additional unit declines as more of a good is consumed. D) lower levels of consumption give lower level of utility.
What are the predictions of the PPP theory with regards to the real exchange rates?
What will be an ideal response?
In order for the government to increase spending, it must increase taxes to finance that spending
a. True b. False Indicate whether the statement is true or false
Which of the following is not a flow in the circular flow model?
A) the flow of goods and services and the flow of resources to produce goods and services B) the flow of profit and the flow of revenue C) the flow of income earned by households and the flow of expenditures incurred by households D) the flow of revenue received by producers and the flow of payments to resource owners