If spending increased by $200, and the GDP increased $1,000 as a result, the MPC must be:
A. 0.80
B. 0.75
C. 5
D. 4
Answer: A
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Refer to Table 2-10. Which of the following statements is true?
A) Barney has a comparative advantage in making unicycles and Fred in making pogo sticks. B) Barney has a comparative advantage in making pogo sticks and Fred in making unicycles. C) Barney has a comparative advantage in making both products. D) Fred has a comparative advantage in making both products.
Refer to Figure 12-10. The total cost at the profit-maximizing output level equals
A) $4,800. B) $3,300. C) $2,500. D) $1,800.
Suppose the exchange rate for 1 euro is $1.40. Purchasing power parity exists if a fast-food meal in the United States costs $5 and in Paris, that same fast-food meal costs:
a) 2.59 euros. b) 3.43 euros. c) 3.57 euros. d) 7 euros.
Recall the Application about the harmattan and how it affects the price of cocoa to answer the following question(s).According to this Application, the recent result of the harmattan was to ________ the equilibrium price and ________ the equilibrium quantity of cocoa.
A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decrease