The size of the marginal propensity to consume determines the size of
a. government spending in the economy.
b. the multiplier.
c. planned investment in the economy.
d. None of these.
b. the multiplier.
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Price cap regulation is defined as regulation that
A) imposes a price ceiling on the regulated firm. B) encourages firms to exaggerate costs to increase profits. C) uses marginal cost pricing to ensure efficient output. D) uses average cost pricing to ensure costs are covered. E) is essentially the same as rate of return regulation.
About how many people lack access to safe water?
a. 20 million b. 200 million c. 500 million d. 1 billion e. 2 billion
All of the following are examples of restraints of trade except which one?
A) price fixing B) predatory pricing C) output restrictions D) bid rigging
Which of the following is an observation made by economist Michael Kremer?
a. World growth rates increased as the population increased. b. Technological progress allows for increasing population because of advances in agriculture. c. World population is growing so rapidly that soon it will outstrip natural resources and our standard of living will decline. d. All of the above are observations made by Kremer.