If the marginal propensity to save (MPS) is 0.5, the multiplier will be
A. 2.
B. 4.
C. 2.5.
D. 0.5.
Answer: A
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Because resources are scarce, economists would say that
A) people's wants are unlimited. B) anything worth doing is worth doing well. C) every choice has an opportunity cost. D) there are no benefits from cooperation. E) the best things in life are always free.
If the nominal gross domestic product (GDP) for a particular year is $4 trillion and the real GDP for that year is $3 trillion, then the GDP price index is 133
a. True b. False Indicate whether the statement is true or false
Is the monopolist supply decision more complicated than that of competitive supply?
a. Yes, because the monopolist can choose its price, and the perfect competitor cannot. b. No, because they are both price takers. c. No, because the market determines the quantity for the monopolist. d. No, because the market determines the price for both firms.
The Federal Insurance Contribution Act (FICA) tax is an example of a(n)
a. payroll tax. b. sales tax. c. farm subsidy. d. income subsidy.