The above figure shows Jane's budget line and two of her indifference curves. How many steak dinners will Jane purchase each month?
A) 4 steak dinners
B) 6 steak dinners
C) 8 steak dinners
D) 10 steak dinners
D
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Suppose that the marginal propensity to consume (MPC) is .75 and there is an increase in investment spending of $100,000. As a result, equilibrium real Gross Domestic Product (GDP) would increase by
A) $400,000. B) $75,000. C) $100,000. D) $750,000.
Locating an American automobile factory in Chad is likely to
a. be successful (profitable) because the workers' wages are low b. be successful (profitable) because Chad workers would be appreciative of the opportunity to work with modern machinery so that their productivity would be high c. be unsuccessful (unprofitable) because of the absence of an infrastructure d. be unsuccessful (unprofitable) because the Chad economy would be operating at more than full employment so that prices and wages would rise e. be successful (profitable) because basic resources (such as raw materials) used in auto production would be exploited fully and would be cheaper than in the U.S.
For the monopolistically competitive firm, the steepness of the demand curve depends on:
A. the number of consumers in the market. B. the steepness of the MC curve. C. the availability of close substitutes. D. None of these statements is correct.
Economic modeling requires
A) mathematics. B) logic. C) calculus. D) trigonometry.