Given the strict quantity theory of money, if the quantity of money doubled, prices would:
A. fall by half.
B. double.
C. remain constant.
D. increase somewhat but less than double.
Answer: B
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Refer to the above table. If the price is $5, the perfectly competitive firm should produce
A) 104 units. B) 105 units. C) 106 units. D) 107 units.
If Boliva's terms of trade changes from 1.00 to 1.20, it implies that
a. Bolivia is exporting more than it's importing b. Bolivia is importing more than it's exporting c. Bolivia's export prices have risen relative to its import prices d. Bolivia has lost the comparative advantage in the production of goods e. Bolivia now has an absolute advantage in the production of goods
Suppose that you own a house. What is the opportunity cost of living in the house?
A. There is no opportunity cost because you own the house. B. There is no opportunity cost unless you could set up a business in the house. C. The opportunity cost is the rent you could have received from a tenant if you didn't live there. D. The opportunity cost is the cost of your monthly mortgage payment plus bills.
Refer to the information above. Which of the following represents the steady-state growth rate of output in this economy?
A) 2% B) 3% C) 5% D) 10% E) 15%