The classical economists believed that if the quantity of money doubled
A) output would double.
B) prices would fall.
C) prices would double.
D) prices would remain constant.
C
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During the Black Plague, capital became worthless. What can explain this?
A) Capital's marginal product fell because there was less labor. B) Capitalists died off at a greater rate than the workers. C) Capital's marginal product increased but the marginal product of labor decreased. D) Workers forgot how to use the capital.
When making historical comparison's of one's income, is it better to use real income or nominal income for the basis of your comparison? Explain why one makes a better comparison than the other
Figure 4-11
The Russian government has restricted sugar availability to reduce the supply of illegal liquor (sugar is used to increase alcohol content). Russians also like to sweeten their tea with jam, another sugar product. Which graph in Figure 4-11 depicts the impact of sugar rationing on the Russian tea market?
a.
1
b.
2
c.
3
d.
4
A nondiscriminating pure monopoly must decrease the price on all units of a product to sell more units. This explains why ________.
A. total revenues are greater than total costs at the profit maximizing level of output B. a pure monopoly's marginal revenue curve is below its demand curve C. there are barriers to entry in pure monopoly D. a pure monopoly has a perfectly elastic demand curve