The Latin phrase ceteris paribus means that when a relationship between two variables is being studied
A) neither of those two variables is allowed to change.
B) both are treated as unpredictable.
C) we recognize that some factors are unknown.
D) all other variables are held fixed.
D
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If a tax increase of $8 billion caused real GDP to decline by $32 billion, then the economy's MPC is
A. 0.5. B. 0.9. C. 0.6. D. 0.8.
A $20 price tag on a sweater in a department store is an example of money serving as a
A) medium of exchange. B) unit of accounting. C) store of value. D) standard of deferred value.
The production of steel in a factory generates a negative externality. A per-unit tax on the factory that equals ________ of steel production will internalize the externality entirely
A) the marginal private cost B) the marginal social cost C) the marginal external cost D) the marginal external benefit
Successful product differentiation by a monopolistically competitive firm makes the demand curve, faced by the firm, steeper
a. True b. False Indicate whether the statement is true or false