The M1 measure of money includes which of the following?
A. Interest payments
B. Savings account deposits
C. Excess reserves
D. Currency in circulation
Answer: D
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A central proposition of the new growth theory is that
A) growth will cease but prosperity will persist. B) knowledge is not subject to diminishing returns. C) government direction and oversight is necessary for consistent growth. D) growth is often just an illusion fostered by growth accounting.
Based upon the equation of exchange, which of the following (ceteris paribus) is most likely to bring about inflation?
A) An increase in the money supply. B) A decrease in velocity. C) An increase in Real GDP. D) a and b E) a and c
Answer the following statement(s) true (T) or false (F)
1. In a contestable market with room for many firms, industry output will be the same as in a successful cartel. 2. The Cournot oligopoly model is based on the assumption that firms treat their rivals' output as fixed and given. 3. Firms' total output is higher in the Cournot oligopoly model than in the Bertrand oligopoly model. 4. In both competition and monopolistic competition, free entry and exit guarantee that the industry's output is produced at the least possible cost. 5. Social welfare would be increased if a monopolistically competitive industry were replaced with a competitive industry.
Economics is a social science that involves the study of how individuals
A) develop their tastes and preferences. B) maximize their wealth. C) define happiness. D) choose among alternatives to satisfy their unlimited wants.