If there are economies of scale in the transactions demand for money, as income increases, money demand
A) increases proportionately.
B) increases less than proportionately.
C) increases more than proportionately.
D) does not change.
B
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Real GDP can increase if the
i. quantities of goods and services produced decrease and prices fall by a smaller percentage. ii. quantities of goods and services produced decrease and prices fall by a larger percentage. iii. quantities of goods and services produced decrease and prices do not change. iv. quantities of goods and services produced increase. A) i and iii B) iii only C) i only D) iv only E) i, ii, and iii
Explain how selling costs in monopolistic competition affect the efficiency of monopolistic competition
What will be an ideal response?
Mary makes 10 pies and 20 cakes a day and her opportunity cost of pro-ducing a cake is 2 pies. Tim makes 20 pies and 10 cakes a day and his op-portunity cost of producing a cake is 4 pies
If Mary and Tim specialize in the good in which they have a comparative advantage ______. A. Mary produces pies B. Tim produces pies and cakes C. Mary produces cakes while Tim produces pies D. Tim produces cakes while Mary produces pies
Automobile manufacturers produce a range of automobiles such as sports utility vehicles, luxury sedans, pickup trucks, and compact cars. What fundamental economic question are they addressing by making this range of products?
A) Who to produce automobiles for? B) How to produce goods that consumers want? C) What to produce? D) Why produce a variety of automobiles?