If total output is calculated by adding up the market value of goods and services produced, then more expensive items:
A. receive a greater weight than cheaper items.
B. receive the same weight as cheaper items.
C. receive a smaller weight than cheaper items.
D. are double counted.
Answer: A
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A) Sugar B) Assembly line workers C) The big chocolate stirring machines D) Packaging materials
Which of the following statements is NOT true about Say's law?
A) Markets would be regularly hit by severe shortages and surpluses. B) People produce more goods than they want for their own use only if they seek to trade them for other goods. C) Desired expenditures will equal actual expenditures. D) Surpluses will be eliminated by falling prices and shortages will be eliminated by increasing prices.
________ choose the quantities of factors of production to hire, and ________ choose the quantities of goods and services to produce
A) Entrepreneurs; firms B) Firms; firms C) Markets; markets D) Factor markets; goods markets E) Firms; households
If the growth rate of the money supply in an economy is 5%, the growth rate of output is 2%, and the velocity of money is constant, what will the inflation rate in this economy be?
What will be an ideal response?