People tend to hold more money as
A. the price level rises and credit availability rises.
B. the price level rises and credit availability falls.
C. the price level falls and credit availability falls.
D. the price level falls and credit availability rises.
B. the price level rises and credit availability falls.
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The above figure shows the isoquants for producing steel. When producing less than 10,000 tons there are
A) increasing returns to scale. B) decreasing returns to scale. C) constant returns to scale. D) diseconomies of scale.
If a state government finances treatment facilities for alcoholics out of revenues from a tax on liquor, it is
a. basing its taxation on ability to pay b. levying a proportional tax c. able to afford fewer treatment facilities when liquor sales decrease d. discouraging alcoholics from seeking treatment at government facilities e. providing a service that the private sector cannot provide
Suppose that inventories were $40 billion in 2007 and $50 billion in 2008. In 2008, accountants would:
a) add $10 billion to other elements of investment in calculating total investment. b) subtract $10 billion from other elements of investments in calculating total investment. c) add $45 billion (= $90/2) to other elements of investment in calculating total investment. d) subtract $45 billion (= $90/2) from other elements of investment in calculating total investment.
The pig farm industry is perfectly competitive and causes pollution to the surrounding air and water. Which of the following is true?
A. Since the industry is perfectly competitive, price and quantity are at the socially efficient levels. B. The competitive price is higher and quantity lower than the socially efficient point. C. The competitive price is higher and quantity higher than the socially efficient point. D. The competitive price is lower and quantity higher than the socially efficient point.