Keynes's model of the demand for money suggests that velocity is ________ related to ________
A) positively; interest rates
B) negatively; interest rates
C) positively; bond values
D) positively; stock prices
A
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The figure above illustrates a linear demand curve. If the price falls from $6 to $4
A) total revenue increases. B) total revenue decreases. C) total revenue remains unchanged. D) quantity demanded increases by more than 100 percent.
According to the endogenous growth model with human capital, what can we say about countries with more efficient schools?
A) They are richer. B) They are richer and grow faster. C) They are richer and grow more slowly. D) They grow faster.
Which of the following is NOT a benefit of money when used as a medium of exchange?
A) allowing individuals to specialize B) allowing individuals to pay off debts C) allowing for some economic efficiencies D) providing economic growth
You have been hired by the No Hassle Collection Agency to provide economic advice. The owner of the agency tells you that No Hassle's only variable input is the number of collection agents. The hourly wage for collection agents is $30.00. The marginal revenue product curve for collection agents reaches its maximum at five workers with a marginal revenue product of $34.00. What advice would you give this firm?
A. Hire collection agents until the marginal revenue product is equal to the wage-which will occur when more than five agents are employed. B. Hire five collection so as to maximize profits. C. Decrease the wage rate paid to collection agents so that their marginal revenue product will decrease. D. Shut down immediately, as the firm is not able to cover all of its variable costs.