Refer to the table above. The MPC and multiplier are, respectively:
A. 0.80 and 5
B. 0.75 and 4
C. 0.75 and 1.33
D. 0.80 and 1.25
B. 0.75 and 4
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Answer the following statement(s) true (T) or false (F)
1. A normative criteria is a way of balancing benefits against costs. 2. Consumer's surplus equals the total value that the consumer places on his purchases minus the amount he actually paid. 3. A consumer's demand curve for pizza is identical to his total value curve for pizza. 4. Market demand always represents marginal value. 5. Social or welfare care is consumer surplus minus producer surplus.
For quantity exchanged to decrease, but the price to rise, there must have been a(n)
a. increase in demand. b. decrease in demand. c. increase in supply d. decrease in supply.
Which of the following statements best describes the problem of stagflation?
A. Both inflation and economic expansion are occurring simultaneously. B. Prices are falling at the same time aggregate output is increasing. C. It is a period where both prices and unemployment increase simultaneously. D. There are unrestricted increases in aggregate demand along a vertical aggregate supply curve.
Marginal utility is the:
A. sensitivity of consumer purchases of a good to changes in the price of that good. B. change in total utility obtained by consuming one more unit of a good. C. change in total utility obtained by consuming another unit of a good divided by the change in the price of that good. D. total utility associated with the consumption of a certain number of units of a good divided by the number of units consumed.