According to the equation of exchange, nominal GDP equals
A) the amount of actual money balances divided by the income velocity of money.
B) the price level divided by the income velocity of money.
C) the amount of actual money balances times the income velocity of money.
D) the price level times the income velocity of money.
C
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The above figure shows the production possibility frontier for a country. Suppose the country is producing at point D. What would be the opportunity cost to move to point C?
A) 6 thousand bottles of wine B) 15 thousand bottles of wine C) 12 tons of rice D) Nothing, it is a free lunch. E) This movement is not possible without economic growth.
Refer to Scenario 13.16. If Gooi can move first, and Ici wants to realize the ($150, $300 ) payoff,
A) all it has to do is threaten to buy yogurt machines, no matter what Gooi does. B) it could make its threat credible by rearranging its physical plant so that the installation of gelato machines by Gooi would bring in profit less than $50. C) it could make its threat credible by rearranging its physical plant so that the installation of gelato machines by Gooi would bring in profit less than $150. D) it could make its threat credible by rearranging its physical plant so that the installation of gelato machines by Gooi would bring in profit less than $300. E) it has to move before Gooi; there is no other way.
Bob values the utility of a single scoop of Baskin-Robbins ice cream at $1.50 . A double scoop gives total utility of $2.25, while a triple scoop yields $2.60 . Baskin-Robbins charges $1.35 for a single, $1.95 for a double, and $2.35 for a triple. How many scoops will Bob buy?
According to the developing government argument, tariffs imposed by a developing country
A. benefit the country because they represent an efficient mechanism for the country's rulers to obtain funds for their personal use. B. can benefit the country by creating net social gains. C. are likely to represent only a very small fraction of government revenues because the volume of imports in developing countries is relatively small. D. will be as inefficient as tariffs imposed by developed countries.