Shoe-leather costs arise from inflation because the velocity of circulation of money ________ as the inflation rate ________
A) decreases; rises
B) increases; rises
C) does not change; rises
D) increases; falls
E) does not change; falls
B
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According to the Application, the average cost of abating one ton of CO2 emissions through the hybrid subsidy is $177, but a switch from coal to natural gas in power plants would reduce CO2 emissions at less than one-third the cost of the hybrid
subsidy. The increase in cost associated with the reduction of one ton of CO2 emissions (assuming that each unit of CO2 emissions is measured in tons) describes the economic concept of A) marginal thinking. B) rational self interest. C) using assumptions to simplify. D) ceteris paribus.
If there's an increase in the future marginal product of capital in a large open economy, it causes the current account to ________ and saving to ________
A) fall; rise B) rise; remain unchanged C) fall; remain unchanged D) rise; rise
The public debt is the:
a. Difference between current government expenditures and revenues b. Total of all past deficits minus all past surpluses c. Ratio of all past deficits to all past surpluses d. Amount of U.S. paper currency in circulation
A monopolist charges a price that is ________ and produces ________ than a perfect competitor
A) lower; less B) higher; less C) higher; more D) lower; more