If the marginal propensity to consume is 0.5, what is the value of the expenditure multiplier?
a. 1.0
b. 1.5
c. 2.0
d. 0.5
e. 10.0
C
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In a two-nation, two-good world, if country A has the comparative advantage in producing good X over country B, then country A
A. could have the comparative advantage in producing the other good Y as well. B. must have the comparative disadvantage in producing the other good Y. C. should not trade with country B. D. can produce good X with fewer resources than country B.
In the 1980s, Howard was one of the best car phone repairmen in his area. After staying home in the 1990s and early 2000s to take care of his children, Howard wants to go back to work in the phone repair business. Which of the following can be said about Howard?
A. Because car phones are obsolete, Howard's human capital is less valuable. B. Howard's knowledge of how to repair car phones is obsolete, and his human capital is less valuable now than in 1980. C. Howard's ability to repair car phones represents an obsolete skill. D. All of these could be said about Howard.
To justify infant industry protection:
a. firm must move down its average cost curve to produce more output. b. a firm's average cost curve must shift upward over time. c. a firm's total cost curve must shift leftward over time. d. a firm's average cost curve must shift downward over time.
Figure 1A.2Refer to Figure 1A.2. If this consumer rents 60 DVDs, how many movie tickets will she purchase?
A. 0 B. 5 C. 10 D. 15