Which of the following theories favor(s) a simple money growth rate rule?
a. real business cycle theory
b. The monetarist theory
c. new classical theory
d. All of the above
e. None of the above
D
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Refer to A Negative Externality Problem. According to Pigou, the socially optimal level of production is
Demand for a good is given by Q = 100 - P. The private marginal cost of production is MCP = 10 + Q. There is a $10 per unit negative production externality in this situation. a. 0 units. b. 30 units. c. 40 units. d. 45 units.
Assume the economy is at point D and it moves to a hypothetical point E located midway between points A and D. Which of the following would have to happen for the economy to move from point D to point E?
a. The price level would have to increase.
b. The price level would have to decrease.
c. Aggregate expenditure would have to increase.
d. Aggregate expenditure would have to decrease.
Global resource demand has:
A. remained relatively constant because increases in population have been offset by declining consumption per person. B. declined because of technological progress. C. remained constant because population growth and increased consumption per person have been offset by technological progress. D. increased because population growth and increased consumption per person have more than offset reduced demand due to technological progress.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,
A. increases B. remains constant. C. initially increases, then decreases. D. decreases.