You can think of velocity as:
A. how much output money can buy.
B. how quickly prices are rising.
C. how often money changes hands.
D. the ratio of the money supply to the inflation rate.
Ans: C. how often money changes hands.
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Refer to the graph shown. An effective price floor at Pf causes consumer surplus to:
A. change from areas A + B + E to areas A + B + C. B. fall from areas C + D + F to area D. C. fall from areas A + B + E to area A. D. change from areas C + D + F to areas B + C + D.
What must occur for a good to violate the Law of Demand?
A. The good must be normal and the income effect must be larger than the substitution effect. B. The good must be normal and the substitution effect must be larger than the income effect. C. The good must be inferior and the income effect must be larger than the substitution effect. D. The good must be inferior and the substitution effect must be larger than the income effect.
What did China create to allow more international trade?
A) Special economic zones B) Foreign exchange centers C) More open and transparent government meetings D) New educational efforts
Tommy graduates from college and starts to look for a job. Tommy is
A) cyclically unemployed. B) frictionally unemployed. C) structurally unemployed. D) employed because he is looking for work. E) unnecessarily unemployed.