If an economy produces 4,000 units of output with a price level of $2 and with a velocity of money of 8, we know that the money supply must be:
A. $1,000.
B. $8,000.
C. $2,000.
D. $4,000.
A. $1,000.
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Producer surplus refers to
a. the difference between the market price for a good and the minimum price the producer would accept b. the difference between the market price for a good and the maximum price a consumer would be willing to pay c. the excess supply a firm produces for the market d. the profit a producers receives for a good e. the difference between consumer surplus and the price of the good
The government builds a new water-treatment plant. The owner of the company that builds the plant pays her workers. The workers increase their spending. Firms from which the workers buy goods increase their output. This type of effect on spending illustrates
a. the multiplier effect. b. the crowding-out effect. c. the Fisher effect. d. the wealth effect.
Characteristics of the Swiss health care system include:
a. a nationalized hospital system where most clinicians are government employees. b. long waiting lists for all elective surgeries. c. individual insurance policies with age-related premiums issued at birth. d. the ability to "opt out" of the government-run health insurance system and seek private coverage. e. government-run insurance coverage financed via payroll taxes.
The production possibilities curve represents
A) the maximum amount of labor and capital available to society. B) the combinations of goods and services among which consumers are indifferent. C) the maximum combination of goods and services that can be produced with fixed resources and technology, given efficient use of the resources. D) the maximum rate of growth of capital and labor in a country.