The marginal cost of a productive resource is equal to the price of the resource if a firm is:
A. A price taker in the output market
B. A price taker in the resource market
C. Able to influence the price of the product by producing more or less of it
D. Able to influence the price of the factor by buying more or less of it
B. A price taker in the resource market
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All else equal, if autonomous consumption ________, the value of the multiplier remains constant
A) increases B) decreases C) remains constant D) all of the above
In the table above, the marginal product of the 5th worker is ________ units per week
A) 2 B) 5 C) 10 D) 19
The _______ model lays out the _______ available to the economy.
A) demand and supply; alternatives B) production possibilities; price alternatives C) production possibilities; alternatives D) demand and supply; prices
In the short run, an increase in government expenditure will...
I. shift the aggregate demand curve rightward II. increase real GDP III. increase the government expenditure multiplier IV. increase the tax multiplier a) I & II b) I & III c) I, II, & III d) III & IV