If the United States exports planes to Brazil and imports ethanol from Brazil, the price received by U.S. producers of planes ________, and the price received by Brazilian producers of ethanol ________
A) does not change; does not change
B) rises; rises
C) rises; falls
D) falls; rises
E) falls; falls
B
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To practice third-degree price discrimination, each of these market conditions must be met except which one?
A) The firm must have market power. B) No arbitrage opportunities can exist between customer groups. C) Different groups of customers with equal own price elasticities of demand must exist. D) Different groups of customers with different own price elasticities of demand must exist.
The simple spending multiplier is the inverse of the marginal propensity to consume
a. True b. False Indicate whether the statement is true or false
The chief difference between one-shot inflation and continued inflation is that
A) Keynesians believe all inflations are one-shot inflations and monetarists believe all inflations are continued inflations. B) one-shot inflation is long and continued inflation is short. C) one-shot inflation is a single increase in the price level and continued inflation is a sustained increase in the price level. D) monetarists believe all inflations are one-shot inflations and Keynesians believe all inflations are continued inflations.
If velocity = 5, the price level = 2, and the real value of output is 2,500, then the quantity of money is
a. $250. b. $25,000. c. $1,000. d. $6,250.