Assume that the MPC is 0.8. If government purchases increase by $500, equilibrium output ________; and if taxes increase by $500, equilibrium output ________.
A. increases by $1,600; decreases by $1,200
B. increases by $2,500; decreases by $2,000
C. increases by $4,000; decreases by $3,000
D. increases by $2,000; decreases by $1,000
Answer: B
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A) less than 19 units per day. B) 20 units per day. C) between 21 and 39 units per day. D) 40 or more units per day.
Suppose a trade secret's owner has successfully proven in court that an infringer has illegally used the trade secret. If the trade secret's owner has lost $10 million in profits because of the infringement and the infringer has earned $6 million in profit as a result of illegally using the trade secret, the trade secret's owner will be awarded ________.
A) $4 million B) $10 million C) $16 million D) $6 million
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A. means-tested benefit. B. inducement for the poor to find employment. C. unconditional benefit. D. fair benefit.