According to the equation of exchange, if nominal GDP equals $6 trillion and the money supply equals $1 trillion, the velocity of money:
a. must be 6
b. must be 1/6.
c. must be 6 trillion.
d. must be 1/6 trillion.
e. cannot be determined unless we know the price level.
a
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On necessities, more of the incidence of tax is
A. borne by the producer. B. borne by the consumer. C. shared equally between the producer and the consumer. D. None of these are correct.
A firm will continue to operate in the long run as long as price exceeds long-run average variable cost.
Answer the following statement true (T) or false (F)
Suppose someone knew that the probability of incurring a $10,000 medical expense was 5%, and the odds of being healthy and incurring no expenses was 95%. If they used that information to compare the expected cost to them ($500) with the $600 premium it would cost to get full coverage and decided to buy the insurance, then economists would say they are
A. risk-averse. B. risk-neutral. C. Irrational. D. risk-loving.
Refer to Scenario 14-2. As a result of Kristy's deposit, Bank A can make a maximum loan of
A) $2,000. B) $8,000. C) $10,000. D) $50,000.