The profit-maximizing level of employment for a price-taking firm occurs where marginal revenue product equals marginal resource cost. In contrast, the profit-maximizing level of employment for a price-setting firm occurs where marginal product equals marginal resource cost
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An Indian student paid $16,000 for a course in a university in the U.S. This transaction will lead to a(n) ________
A) decrease in the GDP of India B) increase in the GDP of India C) increase in the GDP of U.S. D) decrease in the GDP of U.S.
Refer to Figure 24-1. Ceteris paribus, a decrease in personal income taxes would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
If the government of Canada increased its budget deficit, then domestic investment
a. and net exports would rise. b. would rise and net exports would fall. c. would fall and net exports would rise. d. and net exports would fall.
Assume the MPC is 0.75. To eliminate an AD shortfall of $200 billion, the government should
A. Increase taxes by $66.7 billion. B. Decrease spending by $50 billion. C. Increase spending by $50 billion. D. Increase spending by $800 billion.