The equation of exchange is written as
a. M × V = P × Y.
b. M × P = V × Y.
c. M × Y = P × V.
d. M × Y = Y × P.
a
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The figure above shows the market for a good with an external benefit. When 6 units are produced, marginal social benefit equals ________ and marginal external benefit equals ________
A) $200; $150 B) $350; $200 C) $200; $50 D) $350; $150 E) $150; $250
When a country gains from trade:
A. everyone in that country benefits from the trade. B. the net gain of surplus is positive for that country. C. the total producer surplus increased in the country. D. the total consumer surplus increased in the country.
Which of the following are reasons that banks are so heavily regulated?
a. Governments are concerned about the safety of deposits. b. The industry is a principal determinant of aggregate demand. c. Bank failures are contagious. d. All of the above are correct.
When the consumer has found the best affordable bundle of goods:
A. the area above the indifference curve that runs through the consumer's best bundle does not overlap with the area below the budget line. B. the area above the indifference curve that runs through the consumer's best bundle does not overlap with the area above the budget line. C. the area above the indifference curve that runs through the consumer's best bundle should overlap with the area below the budget line. D. the area above the indifference curve that runs through any bundle other than the consumer's best bundle does not overlap with the area below the budget line.