Spending VCU4 on real-world goods and services causes the nation's:
a. Monetary base to fall.
b. M2 money supply to fall.
c. M2 money multiplier to remain the same.
d. M2 money supply to rise.
.C
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What is producer surplus? What does producer surplus measure?
What will be an ideal response?
The arguments of Kessel and Alchien (1959) on the terms of trade and the question of "who paid for the Civil War (1861–1865)" conclude that 40 percent of the war's burden fell on
(a) those who exported manufactures. (b) those who purchased imports. (c) farmers alone. (d) the economy as a whole.
The reason the production possibilities curve is bowed outward (concave) is
A. that the number of resources is increasing. B. that technology is constantly changing. C. that the economy has more capital goods than entrepreneurial effort. D. the law of increasing additional cost.
If real GDP per person was equal to $2,000 in 1900 and grew at a 1 percent annual rate, what would be the value of real GDP per person 100 years later?
A. $2,210 B. $4,000 C. $20,000 D. $5,410