If real output in an economy is 1,000 goods per year, the money supply is $300, and each dollar is spent an average of 4 times per year, then according to the quantity equation, the average price level is
a. 3.33.
b. 0.83.
c. 1.20.
d. 13.33.
c
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If an increase in marginal tax rates leads to an increase in tax revenues, then
a. the Laffer curve model of tax revenue is refuted. b. supply-side economics is refuted. c. the economy could be below the tax revenue maximizing tax rate. d. we could be on the upward sloping portion of the Laffer curve.
If average cost is falling, marginal cost must also be falling.
Answer the following statement true (T) or false (F)
Compared to traditional bank loans, microfinance loans
A. require collateral. B. have repayments that begin at a much later date. C. are much larger. D. are made more frequently to women than to men.
In the short run the firm has at least one fixed input
a. True b. False Indicate whether the statement is true or false