If the MPC is 0.75, and the government cuts spending by $100b, the overall effect on GDP will be:
A. a decrease of $400b.
B. an increase of $250b.
C. a decrease of $250b.
D. an increase of $400b.
A. a decrease of $400b.
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An economist left her $100,000-a-year teaching position to work fulltime in her own consulting business. In the first year, she had total revenue of $200,000 and business expenses of $150,000 . She made a (an):
a. economic profit. b. accounting loss but not an economic loss. c. implicit profit. d. economic loss.
Economic growth can be depicted as
A) a change in the country's MRS. B) a change in the country's MRT. C) a shift of the country's production possibilities frontier to the right. D) a shift of the country's production possibilities frontier to the left.
In a free-market system, the amount of output that any one household gets depends on its
A. income and wealth. B. wealth. C. income. D. wage and interest income.
Refer to the tables below . For OMICS, the opportunity cost of producing an additional unit of B is:
Two nations, ECON and OMICS, each produce goods A and B. The table gives points on each nation's production possibilities curve.
A. 1/3 unit of A
B. 1/2 unit of A
C. 2/3 unit of A
D. 1 unit of A