If real GDP is $10 trillion and the velocity of circulation is 2, the quantity of money
A) is $2 trillion.
B) is $5 trillion.
C) is $20 trillion.
D) cannot be determined from the information given.
D
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Bureaucratic overprovision of a public good could occur because
A) of a failure of minimum differentiation. B) of rational ignorance among voters. C) voters want more of the good than do bureaucrats. D) bureaucrats attempt to maximize efficiency.
Depreciation allowance ________ the profit subject to taxation, which ________ the amount of tax the firm pays.
A) decreases; decreases B) increases; increases C) increases; decreases D) decreases; increases
Economists believe that most individuals act as if they are motivated by self-interest and: a. respond selfishly
b. respond in predictable ways to changing circumstances. c. it leads to inconsistent and unpredictable behavior. d. all of the above.
Which of the following properly matches the owner of a resource with the corresponding payment?
a. Land owners and rent b. Entrepreneurs and interest payments c. Laborers and profit d. Entrepreneurs and rent e. Capitalists and salaries