Monetarists argue that the relationship between the amount of money which households and businesses want to hold and the level of national income
A. has decreased historically because of increased accessibility to credit.
B. rises during recession and falls during periods of full employment.
C. falls during recession and rises during periods of full employment.
D. is stable.
D. is stable.
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Legal Tender is a reference to:
(a) Cash in circulation plus bank credit; (b) Cash in circulation plus cash reserves held by financial institutions; (c) Cash in circulation plus government reserves; (d) Cash in circulation plus deposit accounts with the banking sector.
An external cost, such as the cost generated by pollution, is
A) a cost paid by consumers of the product. B) a cost paid by producers of the product. C) a cost paid by a third party or by society at large. D) not a true opportunity cost of production.
Economies of scale are most closely associated with a firm's
A. ATC curve. B. AVC curve. C. MC curve. D. Demand curve.
China has developed a comparative advantage in the production of children's toys. The source of this comparative advantage is
A) superior process technology. B) a large supply of natural resources. C) a large supply of unskilled workers and relatively little capital. D) investment in capital used to produce toys.