When the money supply increases at the same time that velocity is decreasing, total spending will
A) always rise.
B) always decline.
C) fall if the decrease in velocity is relatively less than the increase in the money supply.
D) fall if the decrease in velocity is relatively greater than the increase in the money supply.
D
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Countries with a relatively high stock of skilled labor will have a comparative advantage in producing goods that require relatively larger quantities of skilled labor
a. True b. False Indicate whether the statement is true or false
Define the following terms and explain their importance to the study of economics
a. maximin criterion b. Nash equilibrium c. Dominant Strategy d. Zero-sum game e. Credible threat
Which of the following statements is true?
A. Sales, excise, and flat-rate taxes violate the ability-to-pay principle of taxation fairness because each results in a smaller dollar burden on the poor than the rich. B. Government failure may occur if voters are rationally ignorant. C. Special-interest group political pressure results only from programs for which benefits outweigh costs. D. Majority-rule voting and benefit-cost analysis result in the same projects being undertaken.
In recent times, the price of oil has risen dramatically. Economic analysts currently are focusing on questions concerning the likely impacts of this price increase on the U.S. economy. The branch of economics that deals with this situation (i.e., what
will be questions) is called ________ economics. Fill in the blank(s) with correct word