In general, the purpose of markets is to facilitate the exchange of goods and services between buyers and sellers
a. True
b. False
Indicate whether the statement is true or false
True
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The simplified spending multiplier is calculated as:
A. 1/(1 ? MPC). B. ?1/(1 ? MPC). C. ?MPC/(1 ? MPC). D. (1 ? MPC) × ?MPC.
When the Social Security system enters its deficit years and the bonds held in the trust fund are drawn down,
a. overall taxes will be reduced as the trust funds are used to pay benefits to retirees. b. the payroll taxes used to finance Social Security benefits can be reduced because the trust funds will be sufficient to pay the retirement benefits of the baby boom generation. c. taxes will have to be raised (or additional funds will have to be borrowed) in order to redeem the bonds held in the trust fund. d. income taxes will have to be reduced in order to keep the revenues and expenditures of the Social Security system in balance.
If the monopolist charges a high price, he will sell:
A. more than demanders want to buy at that price. B. less than if he were to charge a lower price. C. more than if he were to charge a lower price. D. as many as he supplies to the market at that price.
Which of the following would be an example of a fixed cost to a firm?
A. wages for the laborers B. electricity and other fuel costs C. rent for the building it occupies D. the cost of raw materials