According to the classical economists
A. a market economy should never experience unemployment.
B. a market economy should never experience inflation.
C. if unemployment appears, it would soon disappear because of a reduction in interest rates, wages, and prices.
D. if inflation appeared it would soon disappear because of a reduction in interest rates, wages, and prices.
C. if unemployment appears, it would soon disappear because of a reduction in interest rates, wages, and prices.
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The velocity of circulation grows at 1 percent and real GDP grows at 3 percent. If the quantity of money grows at 4 percent, the inflation rate is
A) 8 percent. B) 4 percent. C) zero. D) 2 percent. E) 10 percent.
Marginal cost is calculated by dividing the change in total cost by the change in total output
a. True b. False Indicate whether the statement is true or false
How do insurance companies try to reduce: 1) the moral hazard problem; 2) the adverse selection problem?
The following table shows four firms, the amount each pollutes, the marginal cost for each firm to clean up pollution, and the total cost to each firm of eliminating all pollution.FirmTotal Discharge (in tons)Marginal Cost of Cleanup(per ton)Total Cost of CleanupA60$5.00$300B70$8.00$560C80$7.50$600D90$4.00$360The total discharge of these four companies is 300 tons. Assume there is no one else who pollutes. If the government establishes a regulation requiring each company to reduce pollution by 50 percent, what will be spent on reducing pollution?
A. $1,050 B. $910 C. $660 D. $1,710