Assume the marginal propensity to consume is 0.8. If consumer spending increases by $20 billion, then real GDP will
A. decrease by $100 billion.
B. increase by $16 billion.
C. increase by $100 billion.
D. not change.
Answer: C
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Refer to the table above. What is the marginal rent cost if the firm decides to choose factory Far over factory Very Far?
A) $40 B) $100 C) $150 D) -$150
Marginal revenue measures the change in
a. output generated by a change in price b. price generated by a change in output c. output generated by hiring one more factor of production d. total revenue generated by a change in price e. total revenue generated by a change in output
If there is a shortage in the market for foreign-currency exchange, what happens to the exchange rate and to net exports?
If consumers are identical, then
A) price discrimination is impossible. B) price discrimination can occur if each consumer has a downward-sloping demand curve for the product. C) perfect price discrimination is the only form of price discrimination that can increase a monopoly's profit. D) tie-in sales cannot increase a monopoly's profit.