The U.S. dollar is called
A) frail money because wear and tear ruins paper bills.
B) convertible money because the government stands ready to convert it into gold or silver.
C) fiat money because the law decrees it is money.
D) faith money.
E) commodity money, because it is convertible into gold.
C
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In the steady state of Solow's exogenous growth model, an increase in the savings rate
A) increases output per worker and increases capital per worker. B) increases output per worker and decreases capital per worker. C) decreases output per worker and increases capital per worker. D) decreases output per worker and decreases capital per worker.
Which of the following represents the key difference between the short run and the long run?
a. In the long run, the firm makes commitments to a certain type of production technology which are represented as fixed costs in the long run. For example, they have signed a lease on a particular production facility. These fixed costs do not exist in the short run. b. In the short run, the firm makes commitments to a certain type of production technology, which are represented as fixed costs in the short run. For example, they have signed a lease on a particular production facility. These fixed costs do not exist in the long run. c. The short run refers to less than two years and the long run in over two years. d. None of the above are correct.
The marginal cost curve: a. is a vertical line
b. generally rises at first and then declines as output expands. c. generally falls at first and then rises as output expands. d. intersects the average variable cost curve from below at its maximum point.
If a firm in a perfectly competitive market raises its price:
a. it will sell less but earn more revenue. b. it will sell less but earn the same revenue. c. it will sell exactly the same amount. d. it will sell less or more depending on elasticity. e. it will sell nothing.