If nominal GDP is $600 billion and, on the average, each dollar is spent three times per year, then the amount of money demanded for transactions purposes will be:
A. $1,800 billion.
B. $600 billion.
C. $200 billion.
D. $1,200 billion.
C. $200 billion.
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What arguments can be made in favor of product differentiation and advertising?
What will be an ideal response?
The degree of a factor's specificity is directly related to
A) the amount of time required to redeploy the factor to a different industry. B) the cost of the factor as a proportion of the long-run total cost of production. C) the mobility of the factor, with more mobile factors having more specificity. D) technology differences between two countries, with a more advanced technology resulting in more factor specificity. E) factor quality, with higher quality factors having a higher level of specificity.
In terms of the world as a whole, imports must equal exports because
A. Most countries, other than the United States, have a balanced trade situation. B. The United Nations requires it. C. Every good exported by one country becomes an import for another country. D. It is part of international law.
Which of the following most directly reflects the law of diminishing marginal utility?
A. After watching two football games, Terry decides to watch a third game. B. A sports fan enjoys watching Monday night football rather than going to the theater. C. After watching three episodes of her favorite show, Kim decides to go bowling rather than watch a fourth episode. D. A musician receives the biggest ovation of the evening after playing the final number of a recital.