If the marginal propensity to consume (MPC) is 0.8 and there is a desire to increase real GDP by $400 billion, then
A. an increase in real autonomous spending of $80 billion will generate this change.
B. an increase in planned real investment spending of $100 billion will generate this change.
C. a decrease in autonomous real saving of $400 billion will generate this change.
D. an increase in autonomous real consumption spending of $100 billion will generate this change.
Answer: A
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Tomas wants the city to convert a portion of an existing public park to a covered bus stop so it is more convenient to catch a bus to work each day
Michelle wants the city to expand the park so the neighborhood kids have an even larger place to play outside. In this situation, A) Tomas is the villain and Michelle is the victim. B) Michelle should get her way because a larger park is more important than a covered bus sto
If a perfectly competitive firm is producing the short-run profit-maximizing quantity and is earning positive economic profits, the firm should anticipate ________.
A) the market equilibrium price to increase B) earning economic profits indefinitely C) new firms to enter the market D) the market supply to decrease
Collective bargaining refers to
a. the process by which the government sets exemptions from the minimum wage law. b. setting the same wage for all employees to prevent conflict among workers. c. firms colluding to set the wages of employees below equilibrium. d. the process by which unions and firms agree on the terms of employment.
A country can consume outside its production possibilities curve by trading.
Answer the following statement true (T) or false (F)