The quantity theory of money explains how ________ depends on ________
A) real GDP; the money supply
B) the price level; the demand for money
C) the money supply; the velocity of money
D) all of the above
E) none of the above
E
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A tariff is a tax imposed by a government on imports
Indicate whether the statement is true or false
With a price floor:
A. producer surplus will increase if profits increase. B. producer surplus will increase is profits fall. C. producer surplus will decrease if profits increase. D. producer surplus always decreases.
In order for a voluntary agreement to be reached in general, transaction costs should be
A) infinite. B) high relative to expected marginal benefits of the agreement. C) low relative to expected marginal benefits of the agreement. D) determined by the Environmental Protection Agency.
If a firm located in a country charges high prices on its exports and earns profits on its export sales, then
A. the profit earned by the firm is not considered as a part of the exporting country's gross domestic product (GDP). B. the majority of gains from international trade accrue to the foreign buyers. C. the firm emerges as a natural monopolist in the long run. D. the high export price enhances the exporting country's terms of trade.