If the MPC = 0.9 and a household obtains $20,000 more dollars then how much would the household spend of the additional $20,000?
A. $20,000
B. $2,500
C. $18,000
D. $17,500
Answer: C
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Refer to the table below. If the attorney reviews 53 patents, what is the expected cost of infringement?
The above table shows the quantity of patents reviewed by a firm's attorney and the corresponding probability that the firm will infringe on another firm's patent. The cost of infringement is $50,000.
A) $2,000
B) $35,000
C) $50,000
D) -$35,000
Under both perfect competition and monopoly, a firm:
A. faces a perfectly elastic demand curve. B. maximizes profit by setting marginal cost equal to marginal revenue. C. sells at a price equal to the minimum average total cost. D. sells at a price equal to marginal cost.
In a market economy, buyers and sellers communicate their intentions to one another through:
A. government planners. B. negotiations overseen by government agencies. C. elected officials. D. prices.
Of federal government spending, about _____ is spent on defense and about _____ is spent on Social Security, Medicare and Medicaid.
Fill in the blank(s) with the appropriate word(s).