The velocity of money measures the
A. proportion of the money supply which is held as an asset.
B. ratio of the transactions demand to the asset demand for money.
C. average annual rate of increase in the money supply.
D. number of times per year the average dollar is spent on final goods and services.
D. number of times per year the average dollar is spent on final goods and services.
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Regulations that strictly limit pollution
a. provide firms no incentives to reduce pollution once a standard is met. b. provide incentives for firms to discover loopholes in the regulations. c. tend to be economically inefficient ways to reduce pollution. d. All of the above are true.
Which of the following statements is not correct?
a. Male workers with good looks tend to earn more than male workers with average looks b. If discriminating wage differentials persist in competitive markets, it is primarily because employers chose to discriminate even in spite of customer preferences. c. A higher level of human capital raises a worker's wages. d. In competitive markets, workers are paid a wage equal to the value of their marginal product.
The Russian wheat crop fails, driving up wheat prices in the U.S. This is an example of:
A. idiosyncratic risk. B. quantifiable risk. C. diversification. D. systematic risk.
You are responsible for purchasing 20 used computers for your company. Red Brand computers cost $1,250 and Green Brand computers cost $1,800. Based on experience, you believe that 60% of Red Brand computers are lemons (low quality) while 20% of Green Brand computers are lemons (low quality). You are willing to pay $1,000 for a known lemon and $2,000 for a known plum. Which brand do you purchase?
A. Red Brand B. Green Brand C. You are indifferent between brands. D. You don't buy either brand.