Suppose that the supply curve is given by P = Q. What is the elasticity of supply?
A. 10
B. 1
C. 1/10
D. Cannot be determined from these information
Answer: B
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The quantity theory of money asserts that:
a. changes in nominal GDP are inversely related to changes in the velocity of money. b. changes in money supply are positively related to changes in the velocity of money. c. changes in the money supply are unrelated to changes in the price level. d. changes in the output level are unrelated to changes in the price level. e. changes in the money supply are directly related to changes in nominal GDP.
Deficit spending and the national debt are different terms for the same concept
Indicate whether the statement is true or false
One of the factors that causes differences in inequality across countries is:
A. how many income earners there are relative to total population. B. the extent to which governments redistribute income through the public budget. C. the amount of jobs that are available in the country. D. the labor force participation rate within countries.
Suppose a firm employs only capital and labor as inputs. Explain how the firm should allocate its inputs in order to maximize profits in a perfectly competitive market
What will be an ideal response?