The Average Number of Times Per Year Each Dollar Is

question 54

Multiple Choice

The average number of times per year each dollar is used to transact an exchange is known as the:

• A) liquidity of money.
• B) velocity of money.
• C) quantity theory of money.
• D) equation of exchange.

---

Definitions:

Average Total Costs

dividing the total production costs by the quantity of produced units gives the cost for each unit.

Short Run

A period in which at least one factor of production is fixed, limiting the ability of a business to fully adjust to changes in market conditions.

Economic Profit

The differentiation between a business entity's gross revenue and its comprehensive costs, factoring in both explicit and implicit expenses.

Purely Competitive

Describes a market structure where many firms sell identical products, and no single seller can influence the market price.