Given the strict quantity theory of money, if the quantity of money were decreased by 50 percent, prices would
a. fall by 50 percent.
b. rise by 50 percent.
c. increase by 100 percent.
d. decrease by 100 percent.
A
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An HMO hires radiology services from India to cut costs. If all else remains equal, this will
A) decrease net exports. B) increase the current account balance. C) decrease the balance of trade. D) decrease the financial account.
The name economists give the process by which stockholders gather information by frequent monitoring of the firm's activities is
A) costly state verification. B) the free-rider problem. C) costly avoidance. D) debt intermediation.
Which of the following about Social Security is true?
a. All of the current revenues flowing into the Social Security system are needed for benefit payments to current retirees. b. If the Social Security surplus was used to pay down the privately held federal debt, this would reduce future taxes and, thereby, make it easier to deal with the retirement of the baby boomers. c. During the 1980s and 1990s, most of the social security surplus was used to reduce the national debt. d. When the Social Security surplus is used to cover the current operating expenses of the federal government, it will make it easier for future taxpayers to provide promised Social Security benefits to baby boomers.
Which of the following conditions is characteristic of a monopolistically competitive firm in long-run equilibrium?
a. P > demand and P = MR b. ATC > demand and MR = MC c. P > MC and demand = ATC d. P < ATC and demand > MR