Money neutrality states that
A) with money, one can still use the representative agent.
B) changes in money do not affect real aggregates.
C) changes in inflation do not affect real aggregates.
D) monetary policy is independent from politics.
B
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Suppose the demand for peaches sold from one roadside stand in Georgia is perfectly elastic. As a result, a 7 percent increase in the price charged by the owner of this stand leads to
A) zero peaches sold by this stand. B) no change in the quantity demanded at this stand. C) a 7 percent decrease in the quantity demanded at this stand. D) a 7 percent decrease in demand at this stand. E) a virtually infinite increase in the quantity demanded at this stand.
Which of the following is an accurate statement about a perfectly competitive market?
a. The market has few buyers and sellers. b. Suppliers have significant control over prices. c. Each buyer purchases a large percent of the total amount sold. d. At the market price, the firm’s demand curve is extremely elastic.
Which of the following definitely means productivity has increased?
A. More output from fewer workers. B. Less output from fewer workers. C. Less output from more workers. D. More output from more workers.
In terms of an economy's production possibilities curve, a decrease in the level of human capital, ceteris paribus, will cause
A. An inward shift of the curve. B. A movement along the curve. C. A movement from the curve to a point inside the curve. D. An expansion of the curve.