If the marginal propensity to consume ( MPC) is 0.5, the value of the multiplier is
A. 4
B. 3
C. 2
D. 5
Answer: C
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Employment protection laws make it ________ for firms to hire people, which can result in a(n) ________ in the number of people who are structurally unemployed
A) more risky; increase B) more risky; decrease C) less risky; increase D) less risky; decrease
If the income elasticity for chocolate chip cookies is 1.84, then chocolate chip cookies are
A) a normal good and income inelastic. B) a normal good and income elastic. C) an inferior good and income inelastic. D) an inferior good and income elastic.
Which of the following statements is true?
a. Expected inflation rate = real interest rate - nominal interest rate. b. Nominal interest rate = real interest rate + expected inflation rate. c. Real interest rate = nominal interest rate + expected inflation rate. d. Nominal interest rate = real interest rate - expected inflation rate. e. Expected inflation rate = nominal interest rate + real interest rate.
Slick Shades has a constant marginal cost of production equal to $80 and the distributors have a constant marginal cost of distribution equal to $30. If Slick Shades vertically integrates with the perfectly competitive distributors, the relevant demand curve for the combined firm is the ________ demand curve and the combined firm's marginal cost is equal to ________.
The figure above shows the wholesale demand and marginal revenue curves for Slick Shades Sunglasses, a sunglasses firm with market power. Slick Shades Sunglasses has a constant marginal cost of production and it sells to perfectly competitive independent retail distributors that have a constant marginal cost of distribution.
A) retail; $110
B) retail; $80
C) wholesale; $110
D) wholesale; $80