The Italian economy can be characterized by Equation 24.1.EQUATION 24.1:C = 300 + 0.8Yd G = 400T = 200I = 200Refer to Equation 24.1. At the equilibrium level of output in Italy, consumption equals
A. $3,100.
B. $3,250.
C. $3,400.
D. $3,625.
Answer: A
You might also like to view...
The theory of comparative advantage suggests that trade should happen
a. between economies with small differences in opportunity costs of production. b. between economies with large differences in opportunity costs of production. c. between economies with large differences in specialization. d. between economies with small differences in specialization.
How do limited and bundled choice contribute to government inefficiency?
Please provide the best answer for the statement.
Suppose that a labor market is initially in equilibrium. If the minimum wage is set above the initial equilibrium wage rate:
A. all workers in the labor market will be better off, receiving a higher wage per hour. B. the labor supply curve will shift to the right. C. the quantity demanded of labor will decrease along the given labor demand curve. D. All of these
You are considering playing a card game. The rules of the game are such that you pick a card from a standard deck of 52 cards and if the card is a diamond, you win $30 . The catch is, you have to pay the dealer a fee of $10 to play the game
What is the expected value of this gamble? (Hint: In a standard deck of cards, ¼ of the cards are diamonds).