If the marginal propensity to consume (MPC) is 0.96, the value of the spending multiplier is:
a. 25.
b. 40.
c. 96.
d. 100.
a
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The Herfindahl-Hirschman Index is a measure of market power that focuses on:
A) the ratio of the price of a firm's product to the price elasticity of demand for the product. B) the share of the market controlled by the X largest firms in the market. C) the sum of the squares of the market share of each firm in an industry. D) the difference between a firm's product price and its marginal costs of production.
Over the long run, a government's fundamental source of revenues is
A) printing money. B) user fees and taxes. C) exports. D) gold sales.
Added expenditures in the circular flow that are not paid for out of domestic resource income are known as
a. leakages. b. injections. c. imports. d. infusions.
The concept that suggests the consumption of the first few units of any good tends to bring a higher level of utility to a person than consumption of later units is the:
a. law of diminishing marginal utility. b. law of supply. c. law of demand. d. law of consumption.