If households spend $0.75 of each additional dollar of increased income, the expenditure multiplier will be
A) 1.33.
B) 4.
C) 5.
D) 7.5.
B
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At the beginning of the year, Tom's Tubes had a capital stock of 5 tube inflating machines. During the year, Tom scrapped 2 old machines and purchased 3 new machines. Tom's capital stock at the end of year equals
A) 1 machine. B) 2 machines. C) 3 machines. D) 6 machines.
Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate
a. True b. False Indicate whether the statement is true or false
In this graph for positive externalities in consumption, the deadweight loss is caused by ______.
a. government intervention
b. defective products
c. overproduction
d. underproduction
A reason why agricultural cartels are not as effective as the Organization of Petroleum Exporting Countries (OPEC) is that non-member countries can
A. increase their supply of crops but not their oil supply. B. decrease their oil supply but not their supply of crops. C. increase their oil supply but not their supply of crops. D. decrease their supply of crops but not their oil supply.