When we are at full employment, according to the sophisticated quantity theory of money, if M rises,
A. V will decline.
B. P will rise by the same percentage.
C. PQ will remain the same.
D. PQ will rise by the same percentage, but most or all of the increase will be in P.
D. PQ will rise by the same percentage, but most or all of the increase will be in P.
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Which of the following items is recorded in the financial account?
A. A Chinese businessman imports Ford automobiles from the United States. B. A U.S. tourist spends money on a trip to China. C. The New York Yankees are paid $10 million by the Chinese to play an exhibition game in Beijing, China. D. Ford Motor Company of the United States provides part of the financing for a new automobile factory in China.
Betty is out on a first date with Barney. She decides to order the garden salad with dressing on the side in an effort to make a good first impression, even though she prefers leg of lamb. Economic theory:
A. cannot explain why someone would choose a meal that brings her less utility than another. B. would suggest that making a good impression with her choice will bring her more utility than ordering lamb and making a bad impression. C. would suggest that she values what Barney thinks of her and will derive negative utility if she does not impress him. D. cannot be used to explain matters of the heart.
The law of demand states that
a. there is a positive relationship between price and quantity demanded b. price is the only factor that influences the quantity that people are willing and able to buy c. price and quantity demanded are inversely related d. the demand curve shifts whenever the price of a good changes e. by producing a product, firms create a demand for it
Towards the end of the twentieth century, some of the world's more affluent countries experience robust growth while others experienced growth slowdown or even stagnation. Which of the following is not a reason for the divergent growth trend?
A. disparities in the rate of accumulation of human capital B. unwillingness to enforce property rights C. disparities in the employment rate D. differences in macroeconomic policymaking that allow producers to take a long-term view