Assume the economy is in recession, the MPC is 0.80, and an increase of $200 billion in spending is needed in order to reach full employment. The target can be reached if government spending is increased by:
A. $20 billion.
B. $200 billion.
C. $80 billion.
D. $40 billion.
Answer: D
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A graph has a point that is either a maximum or a minimum. To the left of the point, the slope of relationship is positive. To the right of the point, the slope is negative
Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.
The price of an nonrenewable resource is expected to rise at a rate equal to the
A) rate of supply. B) rate of population growth. C) rate of demand. D) interest rate.
An average tax rate is calculated as
A) total taxable income × taxes paid. B) taxes paid ÷ total taxable income. C) (total taxable income - taxes paid) ÷ taxable income. D) total taxable income ÷ taxes paid.
Refer to the table below. Marginal utility begins to diminish with the consumption of the:
The table below shows a consumer's utility schedule.
A. Fifth unit
B. Fourth unit
C. Third unit
D. Second unit