If interest rates rise, then velocity should ____ in the Keynesian model and _____ in the Monetarist model
a. rise; fall.
b. stay the same, stay the same.
c. rise, stay the same.
d. fall; rise.
e. none of the above
C
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The public debt is
A) an excess of government spending over government revenues during a given time period. B) all federal government debt irrespective of who owns it. C) a situation in which the government's spending is exactly equal to the total taxes and other revenues it collects during a given time period. D) the total value of all outstanding federal government securities.
Property rights allowing individuals to own goods, services, and factors of production are most important in:
a. capitalistic economies. b. socialistic economies. c. planned economies. d. command economies.
Teddy's Bear Shop operates in a perfectly competitive market where the prevailing price is $15 . Teddy's marginal cost curve crosses his average total cost curve at $20 . The marginal cost curve crosses his average variable cost curve at $17 . In the short run, Teddy's Bear Shop
a. should operate at a lower output level where it can suffer less of an economic loss b. will suffer an economic loss, but should continue to operate at the minimum of its average variable costs c. will just break even, with neither a profit nor a loss, and should operate d. will suffer an economic loss and should shut down e. should operate at a higher output level where it can suffer less of an economic loss
Dick owns a dog whose barking annoys Dick's neighbor Jane. Dick receives personal benefit from owning the dog, and Jane bears a cost of Dick's ownership of the dog. Assuming Jane has the legal right to peace and quiet, which of the following statements is correct?
a. If Dick's benefit exceeds Jane's cost, government intervention is necessary. b. Dick will pay to keep his dog if his benefit exceeds Jane's cost. c. If Jane's cost exceeds Dick's benefit, Dick will pay Jane to keep his dog. d. If Jane has the legal right to peace and quiet, no further transactions will be mutually beneficial.