In a fiduciary monetary system, the value of the money issued by a government is based on
A. public confidence in that currency's acceptability and predictability of value.
B. the gold held in that government's vaults.
C. its being made out of some material with a market value equal to a bill's face value.
D. the ability to convert it to some valuable commodity.
Answer: A
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Use the following table which shows the aggregate demand and aggregate supply schedules for a hypothetical economy to answer the next question.Real Domestic Output Demanded (in billions)Price Level (index value)Real Domestic Output Supplied (in billions)$3,000350$9,0004,0003008,0005,0002507,0006,0002006,0007,0001505,0008,0001004,000The equilibrium price and output levels will be ________.
A. 250 and $7,000 B. 200 and $5,000 C. 300 and $8,000 D. 200 and $6,000
How would the Fed's sale of government bonds on the open market affect the money supply?
What will be an ideal response?
Marginal revenue product is:
a. defined as the amount that an additional unit of the variable input adds to the total revenue b. equal to the marginal factor cost of the variable factor times the marginal revenue resulting from the increase in output obtained c. equal to the marginal product of the variable factor times the marginal product resulting from the increase in output obtained d. a and b e. a and c
The horizontal dotted line is
A. a price ceiling.
B. a price floor.
C. either a price ceiling or a price floor.
D. neither a price ceiling nor a price floor.