Which of the following economies has the largest multiplier?
A. Economy A with an MPS of 0.08
B. Economy B with an MPS of 0.12
C. Economy C with an MPC of 0.94
D. Economy D with an MPC of 0.70
C. Economy C with an MPC of 0.94
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The total cost of purchasing a car is:
a. the dollar amount paid for it. b. the dollar amount paid for it plus the seller's opportunity cost. c. the dollar amount paid for it plus the buyer's opportunity cost of time spent on buying it. d. the dollar amount paid for it plus the seller's opportunity cost of the time spent on looking for a buyer.
In the Cournot model, each firm's reaction function shows the firm's ________ as it depends on its rival's output.
A. marginal revenue B. optimal, profit-maximizing output C. break-even output D. minimum cost
In trying to determine the "true cost" of some debated proposal,
A) actions have no true cost, only benefits. B) actions will entail different costs for different people. C) the costs of actions must ultimately be the same for everyone. D) there is no difference between costs and benefits.
Could pollution be eliminated by banning all activities harmful to the environment?
A) No, because legislation is influenced by industrial lobbyists. B) No, because the cost of doing so would be higher than even the most dedicated environmentalist would agree to accept. C) Not until we have better information on the sources of pollution. D) Yes, if we are willing to place long-run considerations ahead of short-run profits.