The velocity of money is the:
a. rate at which the price index for consumer goods rises.
b. multiple by which an increase in government expenditures will cause output to expand.
c. average number of times a dollar is used to buy goods and services included in GDP.
d. number of times a dollar is taken out of the country during a year.
c
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There are 10 identical internet service providers (ISPs) in a city serving a market demand with an elasticity of -1.5. The elasticity of supply for each firm is 3.0. The elasticity of demand faced by an individual ISP is
A) -42. B) -15. C) -1.5. D) -27.
Other things being equal, if there is an increase in the price of the good measured on the vertical axis, the budget constraint will shift outward
a. True b. False Indicate whether the statement is true or false
Minimum wage laws
a. may encourage some teenagers to drop out and take jobs. b. create labor shortages. c. have the greatest impact in the market for skilled labor. d. All of the above are correct.
The above figure shows the market for pizza. The market is in equilibrium when the cheese used to produce pizza falls in price. What point represents the most likely new price and quantity?
A) A
B) B
C) C
D) D
E) E