The quantity theory of money assumes that money supply and price level are the only variables in the equation of exchange that are free to fluctuate
a. True
b. False
Indicate whether the statement is true or false
False
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Hotelling's model has been used to describe differentiation in the political "market." Suppose that 100 voters are evenly distributed between the extreme left and the extreme right on the political spectrum, and that all voters vote, and they always vote for the candidate closest to them on this spectrum. The numbers on this spectrum represent the number of voters lying to the left of the number. So, at the midpoint, fifty voters lie to the left and fifty to the right. At the extreme right end, all 100 voters lie to the left. 
Suppose Candidate X is running against Candidate Y. If Candidate Z enters the race:
A. all of the voters who were going to vote for Y will now vote for Z. B. most of the voters who were going to vote for Y will now vote for Z. C. approximately half of the voters who were going to vote for X will now vote for Z. D. X will win because Y and Z will be competing for the same voters.
When the price of summer tank tops falls and you buy more of it because it is relatively less expensive, this is called
a) The substitution effect b) The income effect c) The net effect of both the substitution effect and the income effect d) The equilibrium choice for hours worked.
In the long run, a perfectly competitive market produces at ________, whereas the monopolistic competitive firm does not
A) the output at which the lowest average total cost of production is reached B) an output level at which positive economic profits exist C) zero economic profits D) the point at which MR = MC=ATC
Inflation is a very minor problem for lenders because it is relatively easy to estimate future rates of inflation
a. True b. False Indicate whether the statement is true or false