The income velocity of money is the absolute number of times, on average, that
A. each one-unit increase in the price level occurs.
B. each unit of real Gross Domestic Product (GDP) is produced by business firms.
C. each monetary unit is spent on final goods and services.
D. people purchase goods and services during a year.
Answer: C
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For the use of their capital in production, owners receive
a. wages. b. rent. c. interest. d. profit.
A noisy monopoly
A) will be regulated by the Federal Trade Commission until it reduces its noise emissions. B) sells products under its own label for a low price, and sells the virtually identical product with the same quality under a private label for a higher price. C) sells products under its own label for a high price, and sells the virtually identical product with the same quality under a private label for a lower price. D) leverages the Lemon Law to sell both good and poor quality goods for the same price.
Which method of corporate finance is used the most? Why?
What will be an ideal response?
As long as price is greater than average variable cost, a firm maximizes its profit by producing that quantity of output for which
a. average revenue equals average total cost b. the price is the highest c. marginal revenue equals marginal cost d. average total cost is minimized e. average variable cost is minimized