The hypothesis that changes in the money supply lead to an equiproportional change in the price level is called
A) the quantity theory of money.
B) the classical theory of money.
C) the Keynesian theory of money.
D) the fractional theory of money.
A
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Firms that charge a price for their output in excess of marginal cost in the short run
A) are not maximizing profits. B) cannot find buyers for their output. C) are charging a markup. D) will suffer huge losses.
Profit is the return to entrepreneurship.
Answer the following statement true (T) or false (F)
A sudden decrease in the market demand in a competitive industry leads to
a. Losses in the short-run and average profits in the long-run b. Above average profits in the short-run and average profits in the long-run c. New firms being attracted to the industry d. Demand creating supply
In an attempt to reduce poaching of elephant ivory tusks, officials in Kenya burned illegally gathered ivory. Using your understanding of shifts in supply and demand, will this turn out to be a helpful or hurtful move on the Kenyan government's part?