The return on wealth is
A) a stock variable.
B) income.
C) equal to the opportunity cost of holding capital.
D) a stock or flow variable depending upon whether the wealth is in the form of bonds or other financial assets.
Answer: B
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Suppose that you can either buy a radio from a firm for $50 or find and purchase the components yourself and then either assemble them yourself or hire someone to do so. You should
a. buy the radio because it's possible to do so b. assemble the radio yourself because it's possible to do so c. assemble the radio yourself only if you know how to do so d. assemble the radio yourself only if the total price of all the components is less than $50 e. assemble the radio yourself only if the total price of all the components plus the value of your own time is less than $50
If real GDP grows by 3 percent, the velocity of circulation grows by -4 percent, and the quantity of money grows by 3 percent, then in the long run the inflation rate is
A) 1 percent. B) -1 percent. C) 4 percent. D) -4 percent. E) 10 percent.