If on average, a dollar is spent 4 times each year to purchase real output, the velocity of money is:
A. four.
B. one-fourth.
C. the money supply divided by 4.
D. nominal GDP divided by four.
Answer: A
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Jim recently graduated from college. His income increased dramatically;from$5000 a year to $60,000 a year. Jim decides that instead of using the bus, he would buy a car. This implies that
a. The car is a normal goods for Jim b. The car is an inferior goods for Jim c. The bus and the car are complementary for Jim d. Need information on the price of cars
When a country is producing goods and services efficiently it:
A. is producing at a point on or below its production possibilities frontier. B. is getting the most output by using all its available resources. C. has unemployed workers. D. is able to reach a point beyond its production possibilities frontier.
Round-trip airline tickets are usually cheaper if you stay over a Saturday night before you fly back. What is the reason for this price discrepancy?
a. Airlines are practicing imperfect price discrimination to raise their profits. b. Airlines charge a different rate based on the different nature of peoples' travel needs. c. Airlines are attempting to charge people based on their willingness to pay. d. All of the above are correct.
Efficiency wages
a. may increase productivity. b. will increase unemployment. c. may improve worker health. d. All of the above are correct.