An economy produces only orange juice. It produces 400 quarts of orange juice per year. Each quart sells for $8. The quantity of money in the economy is $200. What is the velocity of money for this economy?
a. 8
b. 12
c. 16
d. 20
c. 16
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Refer to Table 1-1. What is Eva's marginal cost if she decides to stay open for two hours instead of one hour?
A) $12 B) $24 C) $36 D) $71
A situation in which a benefit or a cost associated with an economic activity spills over to third parties is called
A) a public good. B) a merit good. C) an externality. D) the free-rider problem.
The U.S. labor movement started
A) with local craft unions composed of workers who engaged in a particular trade or skill, such as baking, carpentry or plumbing. B) during the Civil War. C) after World War I. D) with the Knights of Labor, an organized group of both skilled and unskilled workers.
The fractional reserve system of banking evolved because
a. goldsmiths did not have safes large enough to hold all their gold deposits. b. there was always a dire need for additional money. c. goldsmiths knew that on any given day, only a few depositors would come to claim their deposits. d. goldsmiths knew that they would not be prosecuted for lending out money they did not have.