Suppose that investment is increasing. Most of the increase in real GDP that results is due to ________.
A. an increase in government purchases
B. an increase in consumption
C. additional increases in investment
D. an increase in net exports
Answer: B
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Methods of rent seeking include which of the following? I. Buying a monopoly II. Creating a monopoly III. Price discrimination
A) I and II B) I and III C) II and III D) III only
The point at which the aggregate expenditure line intersects the vertical axis is determined by the marginal propensity to consume and real interest rate
a. True b. False Indicate whether the statement is true or false
Taxes paid divided by total income is the
A. Marginal tax rate. B. Nominal tax rate. C. Horizontal tax rate. D. Effective tax rate.
Each citizen in a small town suffers 5 units of irritation for each bushel of leaves burned in the town. The charge for hauling a bushel of leaves to the land fill is a fee equal to 20 units of irritation. There are 25 people in the town, each of whom minimizes personal irritation and has 10 bushels of leaves. If there are no restrictions of any kind on burning leaves and negotiation costs among citizens are prohibitive, what will happen to the leaves in the town?
What will be an ideal response?