If the MPS is 0.25, the simple multiplier is
What will be an ideal response?
Answer: 4
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In a perfectly competitive resource market the labor supply curve facing the single firm is
A) vertical. B) horizontal. C) downward-sloping. D) upward-sloping.
On the Fourth of July, there is no fireworks display in the small town of Yankeeville, even though it would be efficient for such a display to be produced. Which of the following statements is correct?
a. The lack of a fireworks display in Yankeeville arises because of an externality. b. The lack of a fireworks display in Yankeeville is a case of market failure. c. In deciding not to produce a fireworks display in Yankeeville, private individuals and private firms made decisions that were privately rational but socially inefficient. d. All of the above are correct.
If a nation is going to achieve and sustain a high rate of economic growth, it must
What will be an ideal response?
Exhibit 3-5 Supply for Tucker's Cola Data Quantity supplied per week(millions of gallons) Price pergallon 6 $3.00 5 2.50 4 2.00 3 1.50 2 1.00 1 .50 Exhibit 3-5 shows the supply schedule for Tucker's Cola. If Tucker's Cola and Refresh Cola are the only two suppliers in the cola market and Refresh Cola is willing to sell 5 million gallons when the price is $3.00, 4 million gallons when the price is $2.50, 3 million gallons when the price is $2.00, 2 million gallons when the price is $1.50, 1 million gallons when the price is $1.00, and 0 gallons when the price is $0.50 or less,
A. the market quantity supplied of cola will be 7 million gallons when the price is $2.00. B. Tucker's Cola follows the law of supply, but Refresh Cola does not. C. the market quantity supplied of cola is decreasing as price increases. D. the market supply curve is horizontal.