If the marginal propensity to consume, MPC, is less than 1 and a household's disposable income increases by $2,000, the household's consumption will
What will be an ideal response?
increase by less than $2,000
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To claim that a lottery winner who is to receive $1 million per year for twenty years has won $20 million ignores the process of
A) face value. B) par value. C) deflation. D) discounting the future.
Which of the following is NOT a basic assumption of the "Lucas" model?
A) slow adjustment of wages and prices B) rational expectations C) imperfect information D) market-clearing
A market structure in which there is one large firm that has a major share of the market and many smaller firms supplying the remainder of the market is called:
A) the Stackelberg Model. B) the kinked demand curve model. C) the dominant firm model. D) the Cournot model. E) the Bertrand model.
Which of the following statements best describes the best public policy solutions for international trade?
a. The best public policy solutions involve some degree of protectionism, while finding other ways for public policy to address the particular issues, eventually allowing the benefits of international trade to occur. b. The best public policy solutions typically do not involve protectionism but instead involve finding ways for public policy to address the particular issues, while limiting the benefits of international trade to occur. c. The best public policy solutions typically do not involve protectionism but instead involve finding ways for public policy to address the particular issues, while still allowing benefits of international trade to occur. d. The best public policy solutions require protectionism, in addition to finding ways for public policy to address the particular issues, while still allowing the benefits of international trade to occur.