Because there may be a time lag between a change in the money supply and its effects on nominal GDP, it is ________ to test whether the velocity of money is constant over time.
A. easy
B. impossible
C. difficult
D. pointless
Answer: C
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If the balance on the current account is $346 billion and the balance on the financial account is -$204 billion, what is the balance on the capital account, assuming no statistical discrepancy?
A) $550 billion B) $142 billion C) $0 D) -$142 billion
An implication of scarcity is that:
A. some people will always be poor. B. people must make trade-offs. C. making trade-offs becomes unnecessary as wealth increases. D. people will never be happy.
Which of the following has a production process that would be considered capital intensive?
A. Auto manufacturing B. A chorale C. Serving food at a restaurant. D. Police detective work
Refer to the graph shown. If market price is currently $7.00 per unit, this perfectly competitive firm will maximize profit by producing:
A. between 550 and 650 units of output. B. 850 units of output. C. 650 units of output. D. 450 units of output.