The number of times per year, on average, that a dollar is spent on final goods and services is known as
A) the income velocity of money. B) the price of money.
C) the money supply. D) the equation of exchange.
A
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If a monopolistically competitive firm's marginal cost curve shifts upward, then the amount of output it produces
A) increases. B) stays the same. C) decreases. D) could increase, decrease, or stay the same but more information is needed.
Which of the following statements is NOT true for a perfectly competitive firm?
A) A firm's demand curve is horizontal. B) The firm can influence its demand curve by advertising its product. C) The firm's demand curve is perfectly elastic. D) The market demand and supply curves determine the market price.
Suppose that the U.S. can make 15 cars or 20 bottles of wine with one year's worth of labor. France can make 10 cars or 18 bottles of wine with one year's worth of labor. From these numbers, we can conclude
a. the U.S. has a comparative advantage in the production of cars. b. France has a comparative advantage in the production of wine. c. the U.S. has a absolute advantage in the production of wine. d. all of the above are conclusions are correct.
If the production of capital goods is shown along the horizontal axis of a production possibilities curve, and the production of consumer goods is shown along the vertical axis of a production possibilities curve, and the economy desires to have a rapid rate of economic growth, then the economy should produce at a point
A. at a point near the horizontal axis concentrating on the production of capital goods. B. near the middle of the curve dividing resources equally between the production of consumer and capital goods. C. at a point inside the curve allowing the economy to adjust rapidly to changes in economic activity. D. at a point near the vertical axis concentrating on the production of consumer goods.