The quantity of money is 1 billion, the price level is 1.10, and real GDP is 10 billion. What is the velocity of circulation?
What will be an ideal response?
Ques. 2The world distribution of income has become more equal since 1970 because
A) the distribution of income within most countries has become more equal.
B) foreign aid programs from rich nations have increased in size and especially in effectiveness.
C) average incomes in poor nations, such as China, have risen faster than average incomes in rich nations, such as the United States.
D) None of the above answers are correct.
Ques. 3If Bill thinks tacos and turkey sandwiches are perfect substitutes, then his indifference curves for these two goods
A) are L-shaped.
B) are negatively sloped and linear.
C) are positively sloped and linear.
D) have slopes equal to 1.
Ques. 4The figure above shows the market for airline tickets. If airline tickets are a normal good, then the recession in 2008 that caused people's incomes to decrease lead to a shift from
A) D0 to D1.
B) D1 to D0.
C) S0 to S1.
D) S1 to S0.
Ques. 5Which of the following methods is used by unions to increase the demand for the labor of its members?
A) Decrease the marginal product of union members.
B) Support minimum wage laws.
C) Oppose import restrictions.
D) Decrease demand for the good produced.
Ques. 6The local banking industry currently has a Herfindahl-Hirschman index (HHI) value of 1945 and two of the competing banks have considered merging. Because the merger would raise the HHI by 155 points, the Federal Trade Commission would likely
A) challenge the merger.
B) not challenge the merger.
C) allow the merger as long as the HHI did not increase by more than 155 points as promised.
D) allow the merger under the condition that the HHI remain at the premerger level of 1875.
Quick Reply
