If nominal GDP decreases this will:
a. Decrease the transactions demand and total demand for money
b. Increase the transactions demand for money but decrease the total demand for money
c. Increase the transactions demand and total demand for money
d. Decrease the transactions demand for money but increase the total demand for money
Answer: a. Decrease the transactions demand and total demand for money
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For a perfectly competitive firm, the long-run supply curve is the long-run average cost curve.
Answer the following statement true (T) or false (F)
The graph illustrates the market for bottled water. If the producers of bottled water switch to using improved technology, then the
A) supply of bottled water decreases. B) quantity demanded of bottled water increases. C) quantity demanded of bottled water does not change. D) price of bottled water rises. E) supply curve shifts leftward.
One of the merits of plurality voting is:
A. it produces a result that most participants are happy with. B. its simplicity. C. it guarantees the best option will win. D. it has all four criteria for an ideal voting system.
All factors of production usually experience:
A. decreasing average variable cost. B. diminishing marginal productivity. C. decreasing average fixed costs. D. diminishing total productivity.