A $1 increase in autonomous spending has a multiplier effect greater than one on total expenditures and output because
A) each expenditure is respent in the same amount continuously.
B) overtime expenditures tend to increase.
C) total expenditures include autonomous expenditures.
D) each time an expenditure occurs the recipient respends a proportion of the funds.
D
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Adjudication reduces problems created by negative externalities by
A) assigning liability to the party most able to pay (the deep pocket). B) balancing marginal social benefits against marginal social costs. C) discovering who has what rights. D) making more accurate private benefit-cost analyses. E) measuring externalities more precisely.
The following graph is the production possibility curve for a three-person economy, with workers Janna, Drew, and Kari. 
Who has the greatest comparative advantage in shoe production?
A. Kari B. Janna C. Drew D. None of them
A car owner who has agreed to sell his old car to a buyer at a contracted price will be unable to accept the price offered by other prospective buyers due to the _____ constraint
a. financial b. informational c. societal d. contractual
For a firm in a perfectly competitive market, if it is producing at a level of output where marginal costs are less than marginal revenue it:
A. is producing a profit-maximizing quantity. B. should invest more in advertising in order to raise revenues. C. should cut back production to increase profits. D. should increase production to increase profits.