Pay disparity by race:
A. is caused by a combination of discrimination and differences in skills.
B. is caused solely by discrimination.
C. is caused solely by differences in skills.
D. has disappeared in the last five years.
Answer: A
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According to the quantity theory of money, a 15 percent increase in the quantity of money creates a 15 percent rise in
A) the price level. B) the velocity of circulation. C) real GDP. D) the unemployment rate.
If the demand for money is relatively stable,
A) the velocity of money will be constant. B) the velocity of money will grow at a steady and predictable rate. C) a fixed growth rate for the nominal money supply will lead to a stable growth rate of nominal GDP. D) B and C are both correct.
Compared to proportional-representation systems, two-party systems are thought to lead to:
A. more centrist politics. B. less centrist politics. C. a greater variety of policy getting passed. D. very little legislation actually getting passed.
Which of the following is an example of an international externality?
a. Loss of crops b. Disease epidemic c. Global warming d. Dirty water