Assume that M is $200 billion and V is 6. If V increases by 15 percent, then, according to the monetarist equation, nominal GDP will have increased by:
A. $140 billion
B. $180 billion
C. $220 billion
D. $260 billion
B. $180 billion
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Social forces:
a. affect the price mechanism through cultural norms. b. affect the price mechanism through the educational system. c. affect the price mechanism through scarcity. d. do not affect the price mechanism.
How do the labor force, the nation’s capital stock, and the rate of technical progress contribute to potential GDP growth and labor productivity?
What will be an ideal response?
At a price of $15, a firm sells 80 Blu-ray discs per day. If the slope of the demand curve is 0.10, marginal revenue is $5.
Answer the following statement true (T) or false (F)
Insurance companies are not permitted to require AIDS tests as a precondition for coverage, so they do not know whether or not the people they insure have already contracted HIV (the virus that causes AIDS). This situation is an example of
a. signaling. b. adverse selection. c. the principal-agent problem. d. moral hazard.