If an economy produces 3,000 units of output with a money supply of $500 and a velocity of 9, we know the price level must be:
A. $9.
B. $1.50.
C. $4.50.
D. $2.
Answer: B
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We can use macroeconomic analysis to
A) learn how to balance a checkbook. B) understand why economies grow. C) study the choices made by households. D) understand marginal changes in the macroeconomy.
When the housing market bubble burst, many people found that:
A. they owed more than their house was now worth. B. it was much easier to sell their home. C. the value of their homes exceeded their mortgage loans. D. there was a limited number of houses for sale.
Marginal social cost would be less than marginal private cost in the presence of negative externalities
Indicate whether the statement is true or false
If there is just one producer in an industry where the average total cost curve declines throughout the output range up to where it intersects the industry demand curve: a. the industry will be a natural monopoly
b. charging a price equal to marginal cost would entail economic losses for the producer. c. charging a price equal to average cost would entail a welfare cost. d. All of the above would be true.