What does the quantity theory of money tell us? That
a. the velocity of money is highly variable
b. the money supply directly affects real GDP
c. the money supply inversely affects velocity
d. real GDP increases as the price level increases
e. P = MV/Q
E
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Which of these curves shows a more unequal distribution of income?
a. Curve A b. Curve B c .Curve C
Assume a market price gets set artificially low-that is, it gets set below the equilibrium price. This change means:
A. Every producer loses surplus, and it all gets transferred to consumers. B. Some producers drop out of the market, and those left lose some surplus. C. Every consumer gains surplus, due to the lower price now being charged. D. None of these is true.
Under EPA regulations, a factory
A. must pay for the right to pollute. B. can increase air pollution from its grinding process if it decreases air pollution from its smelting process. C. cannot under any circumstances build a polluting factory in an area where pollution standards are not being met by existing firms. D. can pay off regulators in order to continue operations business as usual.
The World View article "U.S. Slaps China with Huge Anti-Dumping Tariffs" says new tariffs will be imposed on steel from China, and
A. Chinese consumers will benefit. B. U.S. steel producers will benefit from the tariff. C. U.S. steel distributors will gain from the tariff. D. Consumers will benefit from this U.S. trade policy.