The average number of times each dollar is used per year to buy goods and services in the economy is called the
A. velocity of circulation.
B. equation of exchange.
C. law of demand.
D. law of diminishing returns.
A. velocity of circulation.
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Suppose the working age population in Tiny Town is 100 people. If 25 of these people are NOT in the labor force, the ________ equals ________
A) unemployment rate; 25/100 × 100 B) unemployment rate; 25/75 × 100 C) labor force; 75 D) labor force; 25/100 × 100
At various points along the production possibilities frontier,
a. the greatest achievable output levels are illustrated b. resources are not fully employed c. more of one good can be obtained without giving up more of the other d. more efficient output levels are possible e. society is equally well off
The principle of comparative advantage does not provide answers to certain questions. One of those questions is
a. Do specialization and trade benefit more than one party to a trade? b. Is it absolute advantage or comparative advantage that really matters? c. How are the gains from trade shared among the parties to a trade? d. Is it possible for specialization and trade to increase total output of traded goods?
An advancement in technology will cause
a) the PPF to shift inwards towards the origin. b) the PPF to shift outwards away from the origin. c) the economy to move down along the PPF curve. d) the economy to move upwards along the PPF curve.