In the year 1995, which of the following statements is true about the two countries represented in Figure 7.2?
A. The market basket cost approximately the same in both countries.
B. The countries had approximately the same rate of inflation.
C. The CPI was virtually equal in the two countries.
D. Real incomes were rising at the same rate in both countries.
Answer: B
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Which of the following is not a possible source of instability in velocity in the Monetarist model?
a. financial innovation. b. changes in monetary policy c. changes in interest rates d. credit cards.
Why do the perfectly competitive firms earn only normal profits in the long run?
a. Entry or exit is barred b. Firms produce identical products c. A large number of buyers and sellers exist in the market d. Aggregate demand remains constant e. There is free entry and exit of firms
Shocks and Integration) Using the graph, which of the following has the highest degree of market integration with the other countries?
A) Peru and Colombia B) Peru and Uruguay C) Venezuela and Uruguay D) Venezuela
Per capita income in the United States in 2010 was about:
A. $25,300 per person B. $36,300 per person C. $47,300 per person D. $59,300 per person