If autonomous spending increases by $500 billion and, as a result, equilibrium real GDP increases by $2 trillion, then we know that the
A) expenditure multiplier is 0.25.
B) MPC equals 1.
C) expenditure multiplier is 4.0.
D) expenditure multiplier is 2.0.
E) MPC is greater than 1.
C
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Using the above table, the marginal utility for the sixth glass of water is
A. 260 utils. B. 255 utils. C. -5 utils. D. 5 utils.
Suppose that the demand for my new book, Spatulas From Around the World, is such that the demand curve lies everywhere below the average variable cost of producing it. To maximize profits or minimize losses, I should
a. raise price b. lower price to increase demand c. shut down the presses printing my book d. lower price until demand is inelastic e. charge the highest price I can
If Elizabeth can make 3 pies or bake 6 cakes per hour and Benjamin can make 2 pies or bake 8 cakes per hour, _____.
(A) Benjamin has the comparative advantage in making pies. (B) Elizabeth has the comparative advantage in baking cakes. (C) Benjamin should specialize in making pies. (D) Elizabeth should specialize in making pies.
A movement from point C to point A in Figure 1.4 results in
A. A reallocation of resources from smartphone production to television production. B. Permanent unemployment of workers producing plasma televisions. C. More efficient production. D. A reallocation of resources from television production to smartphone production.