Larry, a Ten-Year Old, First Sees Two Identical Glasses with Water

question 134

Multiple Choice

Larry, a ten-year old, first sees two identical glasses with water at the same level; then, the water from one of the short, wide glasses is poured into a taller, thinner glass. Larry will likely conclude that ________.

• A) there is more water in the taller, thinner glass
• B) there is more water in the shorter, wider glass
• C) there are equal amounts of water in the shorter, wider and taller, thinner glasses
• D) there are equal amounts of water in the two identical glasses only

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Definitions:

Money Supply

The combined total of all monetary resources in an economy at a designated time, including cash, coins, and balances in checking and savings accounts.

Velocity

The rate at which money is exchanged from one transaction to another, and how much money is used for purchasing goods and services within a certain period.

Quantity Equation

An equation that relates the quantity of money in an economy to the nominal value of transactions, used in economics to describe the relationship between money supply and price level.

Price Level

A measure of the average prices of goods and services in an economy at a specific time.