By saying that the equation of exchange is an accounting identity, we mean that
A) it is useful for accountants, but not for economists.
B) it identifies the key national income accounts.
C) it is always true.
D) it explains the effect of questionable accounting practices on macroeconomic performance.
C
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Limitations of bargaining include:
A. contracts may not need enforcing. B. the assignment of property rights may be ambiguous. C. if the parties have too much information, bargaining may be unnecessary. D. All of the responses are correct.
When toilet paper sales increase, quarterly economic growth tends to rise. This is an example of:
A. two variables that are negatively correlated. B. the presence of ceteris paribus. C. correlation without causation. D. causation with no correlation.
The average fixed cost curve increases as output increases
a. True b. False Indicate whether the statement is true or false
A government policy that charges coal producers a fee per ton of coal produced (an "effluent charge"), where the fee is determined by the amount of pollutants discharged into the air or water, will lead to a(n):
a. decrease in the market equilibrium quantity of coal produced. b. decrease in the market equilibrium price of coal. c. increase in the market equilibrium price of coal. d. a and c are correct.