The demand for money schedule shows the ________ relationship between money demand and the nominal interest rate which means that as the ________
A) negative; opportunity cost of holding money increases, the nominal interest rate increases
B) negative; nominal interest rate increases, the opportunity cost of holding money increases
C) positive; nominal interest rate increases, the opportunity cost of holding money increases
D) positive; nominal interest rate increases, the opportunity cost of holding money decreases
E) negative; nominal interest rate increases, the opportunity cost of holding money decreases
B
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Specialization and trade do not allow individuals, firms, or even nations to acquire goods that lie beyond their production capabilities
a. True b. False Indicate whether the statement is true or false
Which of the following statements is false?
A) Some prices in an economy adjust faster than other prices. B) Aggregate demand curves slope downward. C) Firms may not adjust their prices immediately because they may be unable to figure out whether a decline in demand is temporary or permanent. D) The absolute price of a good is the dollar or money price of the good. E) none of the above
(Table: Trade-off of Study Time and Leisure Time) Look at the table Trade-off of Study Time and Leisure Time. A student sleeps 8 hours per day and divides the remaining time between study and leisure time. Suppose this student is studying 4 hours and spending 10 hours doing leisure activities. What is true about this allocation of his scarce resources?
A) This point is on the production possibility frontier. B) This point is both efficient and feasible. C) This point is inside the production possibility frontier. D) This point is outside the production possibility frontier.
Answer the next question on the basis of the following data.OutputTotal Cost0$24133241348454561669The average fixed cost of producing 3 units of output is
A. $6.00. B. $7.40. C. $8.00. D. $5.50.