Suppose a country's currency is a gold coin. One day, speculators find a large gold mine, which doubles the supply of gold coins in the economy. In the short run:
What will be an ideal response?
both output and the price level will rise; in the long run, the price level remains higher than its original level, but output goes back to its long-run level.
Correct
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Use the table below to answer the following question.UnitsMarket PriceMinimum Acceptable Price1$10$22104310641085101061014What is the value of producer surplus in the table above?
A. $6 B. $20 C. $54 D. $12
When economists want to hold a number of factors constant, they are demonstrating which of the following expressions?
a. Positive economics model. b. Consumer sovereignty. c. Ceteris paribus. d. Normative economics.
An indifference curve shows _____
a. the relationship between total and marginal utility b. the relationship between the quantity of a good and the maximum attainable satisfaction c. the various combinations of two goods that give a consumer the same amount of satisfaction d. the relationship between the price and quantity of a good that a consumer is able to purchase e. that the quantities of a good that give a consumer maximum satisfaction are directly related to price
Currency is included in
A. M2 only. B. M1 only. C. both M1 and M2. D. neither M1 nor M2.