Assume the following: M = $500; V = 10; and P = $10. If the money supply then increases by 50 percent while total transactions triple, the new value of the price level will be
a. $10.
b. $2.50.
c. $7.50.
d. $5.
d. $5.
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The following table provides data for an economy in a certain year. Consumption expenditures1,000Imports600Government purchases of goods and services700Construction of new homes and apartments500Sales of existing homes and apartments600Exports500Government payments to retirees200Household purchases of durable goods300Begining-of-year inventory500End-of-year inventory600Business fixed investment300Given the data in the table, compute the value of GDP.
A. 2,700 B. 2,400 C. 2,500 D. 2,600
Refer to Table 9-12. Which country has an absolute advantage in producing swords?
A) Estonia B) Morocco C) both countries D) neither country
When the income-consumption curve has a positive slope throughout its entire length, we can conclude that
A) both goods are inferior. B) both goods are normal. C) the good on the vertical (y) axis is inferior. D) the good on the horizontal (x) axis is inferior.
Suppose robotic technology improves the results of abdominal surgery - less time to perform the surgery, faster recovery times, and fewer mistakes. What is the impact of this new technology on the market for abdominal surgery?
a. Demand for robot-assisted surgery will increase, and prices will fall. b. Demand for robot-assisted surgery will increase, and prices will rise. c. Hospitals will be slow to adopt the new technology fearing that it may result in lower prices. d. The demand for surgical assistants will increase. e. Increased demand will result in lower prices.