The value of the multiplier changes if the ________ changes
i. marginal tax rate
ii. marginal propensity to import
iii. marginal propensity to consume
A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
E
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Mode income is
A) the most common income. B) the average income. C) the middle income level. D) the same as money income.
Economists use general equilibrium models of an economy to explain
A) consumption levels. B) production levels. C) relative prices. D) All of the above.
With cheaper communication technology and easy flow of information between countries,
a. industrial production becomes more labor intensive. b. the pattern of employment and production can change. c. the digital divide widens. d. transaction costs increase.
Suppose we have two pairs of substitute goods. The first are very close substitutes, such as Coke and Pepsi, while the others are less close, such as Coke and iced tea. We would expect the cross elasticity of the closer pair to be
a. positive while the less close pair to be negative b. negative while the less close pair to be positive c. one while the less close pair to be zero d. the smaller of the two e. the larger of the two