The quantity theory of money implies that the price level will be stable (no inflation or deflation) when the growth rate of the money supply equals
A) 0. B) the growth rate of real GDP.
C) the growth rate of the velocity of money. D) the growth rate of the price level.
B
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Refer to Scenario 7.2. This production function is an example of which of the following types of production functions?
A) Cobb-Douglas B) Leontief C) Fixed proportions D) Lagrange E) none of the above
It is assumed in economics that people make decisions based upon
A) altruism. B) rational self-interest. C) tradition. D) governmental persuasion.
Refer to Table 7.1. What is the marginal product of the 3rd worker?
A. 4 units of output
B. 3 units of output
C. 15 units of output
D. 5 units of output
Deadweight loss measures the loss in society's welfare that occurs because a monopolist does not produce the socially efficient level of output
a. True b. False Indicate whether the statement is true or false