In a certain economy, the components of aggregate spending are given by: C = 500 + 0.8(Y - T) - 300rI = 200 - 400rG = 200NX = 10T = 150 Given the information about the economy above, what is the short-run equilibrium output if the real interest rate is 5 percent?
A. 3,775
B. 1,359
C. 944
D. 3,810
Answer: A
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Consider a market in which there is an import tariff. Which of the following is TRUE?
A) The lost consumer surplus equals the gain in producer surplus plus the government revenue plus the deadweight loss. B) The lost consumer surplus equals the gain in producer surplus. C) The lost consumer surplus equals the gain in producer surplus plus the government revenue. D) The lost consumer surplus plus the deadweight loss equal the gain in producer surplus plus the government revenue.
If the marginal cost of producing vanity license plates is virtually zero (by prison inmates with little else to do), then states would maximize their profits on plate sales at the point on a linear demand curve where
A. demand is inelastic. B. demand is elastic. C. demand is unit elastic. D. the demand curve crosses the horizontal axis.
What best describes the relationship between England and the US?
a. Throughout US history Britain has been one of the leading sources of immigrants. b. During most of the colonial period it provided relatively little monitoring of colonial actions. c. England often fought the Portuguese to protect its holding in colonial America. d. Until the Civil War, England was the primary source for American manufactured goods.
All of the following are advantages of organizing a business as a sole proprietorship EXCEPT
A. limited liability. B. ease of decision-making. C. single taxation. D. ease of formation.