If velocity = 4, the quantity of money = 20,000 . and the price level = 2.5, then the real value of output is
a. 2,000.
b. 200,000.
c. 12,500.
d. 32,000.
d
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A dominant firm's residual demand curve is
A) the horizontal difference between the market demand curve and the supply curve of the fringe firms. B) the vertical difference between the market demand curve and the supply curve of the fringe firms. C) the demand curve left for the fringe firms after the dominant firm has determined an output level. D) None of the above.
When a firm relies on radio and TV ads to reach potential customers, the firm is engaging in
A) direct marketing. B) mass marketing. C) interactive marketing. D) none of the above.
We observe that the price per ounce of milk in a quart container is higher than the price per ounce in a gallon container. What is the likely reason for this?
A. The higher costs of quart containers B. The higher costs of production of milk in smaller quantities. C. Higher transportation costs for smaller container sizes. D. The marginal utility of milk is higher in smaller containers than it is in larger containers.
To decrease the money supply, the Fed may sell government securities or lower taxes
Indicate whether the statement is true or false