Suppose that the nominal money supply equals $2 billion and nominal GDP is $16 billion. Then, according to the equation of exchange, the velocity of money equals 8
a. True
b. False
Indicate whether the statement is true or false
True
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Correcting a market with an externality through taxation is ________ correcting it through a quota.
A. less efficient than B. more efficient than C. just as efficient as D. Any of these statements could be true depending on whether the tax is imposed on the buyer or seller.
Money-fixed assets include government bonds, corporate bonds, and certificates of deposit.
Answer the following statement true (T) or false (F)
Normative economics seeks to:
A. objectively explain how the economy functions. B. objectively explain economic problems such as inflation and unemployment. C. determine the most appropriate economic goals for a society. D. determine how government policies affect the economy.
According to Chapter 1 of the Undercover Economist, the real explanation for why coffee is relatively expensive outside of a Washington DC subway stop is presented as
A) The relative scarcity of similar locations B) The lack of organization of buyers into a collective C) The quality of the coffee D) The high incomes of Columbian coffee growers