The velocity of money is defined as
A) the average number of times each dollar is used to purchase goods and services.
B) .
C) the total number of times each dollar is used to purchase goods and services.
D) P × Y.
Answer: A
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In the former Soviet Union, producers were paid for meeting output targets, not for selling products. Under those circumstances, what were the economic incentives for producers?
a. to produce good quality products so that society would benefit from the resources used b. to conserve on costs, so as to maintain efficiency in the economy c. to produce enough to meet the output target, without regard for quality or cost d. to produce those products that society desires most
Banks considered "too big to fail" were:
A. helped by fiscal policy, but eventually went bankrupt. B. allowed to go bankrupt. C. bailed out through consumer spending. D. bailed out through fiscal policy.
Refer to the information provided in Figure 2.2 below for the economy of Microland to answer the question(s) that follow.
Figure 2.2Refer to Figure 2.2. If Microland's economy is at Point B, it could produce more consumer goods
A. without sacrificing any capital goods. B. only with additional resources. C. only with technological improvements. D. by sacrificing some capital goods.
Limits on a country's ability to use aid effectively are referred to as its
a. absorptive capacity b. bilateral aid c. conditionality d. grant element e. none of the above