Economists who prefer a broader definition of money prefer the:
A. M1 measure of the money supply to the M4 measure.
B. M2 measure of the money supply to the M1 measure.
C. M5 measure of the money supply to the M2 measure.
D. M1 measure of the money supply to the M2 measure.
Answer: B
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Refer to Table 2-11. South Korea has a comparative advantage in the production of
A) digital cameras. B) wheat. C) both products. D) neither product.
The FOMC directive contains a target growth rate for
A) nominal GDP. B) real GDP. C) the inflation rate. D) M2.
If in a market the last unit of output was sold at a price higher than marginal cost
A) producer is better off producing more. B) consumers are better off if less of the product is sold. C) social welfare is not maximized. D) the unit increased total profit.
Very Technical is a firm that sells computing equipment. It costs Very Technical $150 for each order of computer monitors and the variable cost of placing an order is $10 per monitor. If Very Technical sells 5,000 computer monitors a year and they order 250 monitors, what is the annual ordering cost of the monitors?
A) $110,000 B) $67,000 C) $85,250 D) $53,000