According to the quantity theory of money, if an economy produces 5,000 units of output, its money supply equals $40,000 and the velocity of money equals one, then the price level will equal:
a. $0.13.
b. $1.25.
c. $8.
d. $200.
e. $8,000.
c
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With marginal cost pricing
A) marginal benefits are usually less than marginal cost. B) all opportunity costs will be covered in the short run. C) the price charged is equal to the opportunity cost to society of producing one more unit of the good. D) there cannot be any short-run economic profit.
The utility of a specific product:
A. is determined by consumer income. B. varies from person to person using the product. C. is constant from person to person using the product. D. is determined by the price of the product.
In a perfectly competitive industry, which of the following is a market signal to resource owners?
A) economic profits B) quality of goods C) the level of exports in the country D) the level of subsidies the industry receives
A business produces 400 items and sells them for $15 each for a total of $6,000. The total cost of producing the items is $4,500 in explicit cost and $1,000 in implicit cost. Economic profit is:
A. $500. B. $0. C. $1,500. D. $1,000.