Absolute advantage is based on opportunity cost
a. True
b. False
B
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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.
To analyze aggregate productivity, economists typically assume ________
A) that the hours each person works varies with the wage rate B) that all of the capital and labor in the economy are fully utilized C) that output can increase only if inputs have become more productive D) all of the above E) none of the above
At its profit-maximizing output, the firm in the above figure incurs a total cost of production of
A) $7,000. B) $9,000. C) $6,300. D) $3,900.
Saving is often discouraged by usury laws during inflationary periods because
A. nominal rates of interest are kept above real rates of interest. B. nominal rates of interest are kept below inflation rates. C. nominal rates of interest are kept above inflation rates. D. real rates of interest are kept above inflation rates.