If an economy produces 3,000 units of output with a price level of $2 and the money supply (M) is $2,000, velocity is:
A. 2.
B. 3.
C. 67.
D. 150.
B. 3.
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The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5P. If this economy opens to trade while the world price of a car is $6,000, and the government imposes a quota allowing 3000 cars to be imported, then the winners are ________.
A. domestic consumers B. domestic producers and the government C. domestic consumers and import permit holders D. domestic producers and import permit holders
When Wal-Mart decides to build a new retail store in a town, it will decide to build a large store rather than a small store if the large store is expected to earn a greater economic profit
What other motive would Wal-Mart have for choosing to build a large store? A) A larger store will help Wal-Mart maintain its position as the leading retail company in the world more than a smaller store would. B) Because of economies of scale, the average total cost of production is less for a larger store than a smaller store. C) A larger store will give Wal-Mart greater political influence in the community. D) A larger store may deter entry into the town by a rival firm.
A monopoly has two production plants with cost functions C1 = 50 + 0.1Q12 and C2 = 30 + 0.05Q22. The demand it faces is Q = 500 ? 10P. What is the condition for profit maximization?
A. MC1(Q1 + Q2) = MC2(Q1 + Q2) = MR (Q1 + Q2). B. MC1(Q1 + Q2) = MC2(Q1 + Q2) = P (Q1 + Q2). C. MC1(Q1) = MC2(Q2) = MR(Q1 + Q2). D. MC1(Q1) = MC2(Q2) = P(Q1 + Q2).
The statement, "My iPhone is worth $700" represents money's function as
A) a medium of exchange. B) a unit of account. C) a store of value. D) a standard of deferred payment.