If the multiplier is 3, then the MPC is
a. 1/3.
b. 3/4.
c. 4/3.
d. 2/3.
d
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To calculate GDP using the expenditure approach, in part it is necessary to
A) add imports and exports. B) add imports and subtract exports. C) add exports and subtract imports. D) subtract both exports and imports.
Which of the following is an example of a capital good?
a. an artificial Christmas tree used by a family year after year b. a sweater worn by a sixth grade student c. electricity used by a household to heat a swimming pool d. a pencil used by a shopper making out a grocery list e. a shovel used by a construction worker
Satchel loses his job and immediately begins looking for another. Other things the same, the unemployment rate
a. increases, and the labor-force participation rate decreases. b. and the labor-force participation rate both increase. c. increases, and the labor-force participation rate is unaffected. d. is unaffected, and the labor-force participation rate decreases.
Which of the following is a merit good?
A. Food. B. Cigarettes. C. A computer operating system. D. Local telephone service.