Assume that taxes depend on income. The MPC is 0.9 and t is 0.3. The government spending multiplier is
A. 10.
B. 2.7.
C. 1.42.
D. 1.17.
Answer: B
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Specialization allows a society to produce ________ goods.
A. the same amount of B. fewer C. new D. more
All of the following are characteristics of stock except
A) stock does not represent a promise to repay a fixed amount of funds. B) stock promises to repay a fixed amount to of funds to stock owners. C) stock represents ownership in a firm. D) dividends paid to owners of stock represent a firm's profits.
Pure public goods involve positive externalities.
A. True B. False C. Uncertain
What is one reason why the overall unemployment rate understates the actual employment situation?
A. The rate reflects regional differences. B. The rate is not seasonally adjusted. C. Underemployed people are listed. D. Discouraged workers are not included.