Author: Anonymous

Suppose the following data describe output in two different years: Item Year 1 Quantity Year 1 Price Year 2 Quantity Year 2 Price Oranges 15,000  $     0.25 20,000  $       0.30 Computers 600  $775.00 700  $  825.00 Video Games 8,000  $     0.80 10,000  $       1.10 Compute real GDP in year 2 (Enter as a numeric value e.g. 100000)

True or False.  Allocative efficiency can exist without productive efficiency.

True or False.  Even though there is controversy over economic goals in terms of monetary policy, the Fed has pursed inflation-targeting.

If you use your debit card to purchase a used Ford truck, you are using money primarily as

Children are taken to school by car instead of walking or using public transport is a ___________ externality. Fill in the blank write your answer all in lower case.

The market will:

True or False.  Banks lower transactions costs & act as financial intermediaries 

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In economics, a firm that faces no competitors is referred to as _________________.

True or False.  Banks play no role in the creation of money.