An increase in the money supply, all else held constant, usually ________.
A. increases the interest rate and increases aggregate demand
B. decreases the interest rate and increases aggregate demand
C. increases the interest rate and decreases aggregate demand
D. decreases the interest rate and decreases aggregate demand
Answer: B
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When computing gross domestic product, government services are valued at the
a. price consumers pay for them. b. value of the resources used to produce them. c. value of comparable outputs from the private sector. d. value of taxes collected from consumers.
If the price of cheese falls by 1 percent and the quantity demanded rises by 3 percent, then the price elasticity of demand for cheese is equal to:
A. 0.333. B. 0.30. C. 30. D. 3.
Use the following table to answer the next question.OutputATC Plant 1ATC Plant 2ATC Plant 3ATC Plant 41,500$10$15$20$302,00081217252,50091015203,00012813183,50015611164,00018109144,50020127125,000241511105,50029191386,0003525159Plant sizes get larger as you move from Plant 1 to Plant 4. Which plant size would generate the least average total cost for the 3,000-4,000 level of output?
A. Plant 1 B. Plant 2 C. Plant 3 D. Plant 4
Well-defined and actively-enforced private property rights are necessary to the efficient operation of markets work because they prove that a person
a. owns what he or she is selling b. has the right to buy c. will make a profit d. will satisfy his or her wants