In the quantity theory of money:
A. the price level is a function of the supply of money.
B. the supply of money is a function of the price level.
C. the money supply and the price level are inversely related.
D. the money supply is controlled by the government.
Answer: A
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Refer to above Table 2-1. What is the level of Gross Domestic Product?
A) 2690 B) 3050 C) 2430 D) 3010
Refer to Figure 5.1. All else equal, an increase in total factor productivity will cause a
A) shift from PF1 to PF2. B) shift from PF2 to PF1. C) movement up and to the right along PF1. D) movement down and to the left along PF2.
The excess capacity theorem implies that
A. consumers would be better off if some monopolistically competitive firms left their markets. B. consumers would be better off with more standardization of products. C. monopolistic competition benefits society by eliminating excess capacity in production. D. monopolistic competition wastes some of society’s resources but the elimination of this waste does not necessarily benefit consumers.
If a tax is levied on the sellers of a product, then there will be a(n)
a. downward shift of the supply curve. b. upward shift of the supply curve. c. decrease in quantity supplied. d. increase in quantity supplied.