Which of the following are key elements to the quantity theory of money and prices?
a. Real GDP is constant; velocity is constant; increase in money supply and price level are not proportional.
b. Real GDP varies; velocity varies; increase in money supply and price level are not proportional.
c. Real GDP is constant; velocity is constant; increase in money supply and price level are proportional.
d. Real GDP is constant; velocity varies; increase in money supply and price level are proportional.
c. Real GDP is constant; velocity is constant; increase in money supply and price level are proportional.
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An effective agreement to divide up the market among firms selling products that are close substitutes
A) allows each firm to earn positive net revenue even though its marginal cost is greater than its marginal revenue. B) allows each firm to earn positive net revenue by preventing cooperation from reducing each firm's marginal revenue below its marginal cost. C) tends to keep each firm's price and marginal revenue above its marginal cost. D) tends to result in both higher prices and larger output.
Which of the following countries has more even income distribution than the United States?
a. Canada b. Brazil c. Chile d. Nigeria e. Philippines
If the cross-elasticity of demand for bacon with respect to price of beefsteak is positive, then:
a. an increase in the price of beefsteak will shift the demand curve for bacon outward. b. a decrease in the price of beefsteak will shift the demand curve for beefsteak outward. c. an increase in the price of bacon will shift the demand curve for beefsteak inward. d. a decrease in the price of bacon will shift the demand curve for beefsteak outward.
A compensated increase in the price of a good:
A. causes the consumer to buy more of the good if the income effect is larger than the substitution effect. B. causes the consumer to buy more of the good if the income effect is smaller than the substitution effect. C. always causes the consumer to buy more of that good. D. always causes the consumer to buy less of that good.