As the tax rate decreases, the government spending multiplier
A. increases.
B. does not change.
C. decreases.
D. could either increase or decrease depending on the value of the MPC.
Answer: A
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If there are approximately 8,000 barrels of known reserves of oil, annual consumption of oil is 500 barrels,
and it is estimated that the supply of oil will be depleted in 30 years, how many barrels of unknown reserves of oil are there estimated to be, all else equal? A) 1,333 B) 7,000 C) 12,000 D) 48,000
Consider a firm with the following cost and revenue information: ATC = $8, AVC = $7, and MR = MC = $6 . If the firm produces Q = 60 in the short run, it:
a. is minimizing losses. b. makes a total loss of $60. c. should produce more output. d. is making a mistake and should shut down. e. is maximizing total profit.
Food stamps and Medicaid are examples of:
A. cash transfer programs. B. welfare programs that have been eliminated. C. in-kind transfer programs. D. programs created by the Personal Responsibility Act.
Profits, rents, interest, and royalties are examples of:
A. capital income. B. labor income. C. investment. D. consumption.