If the MPC is 0.7, the tax multiplier is
A. -1.22.
B. -2.22.
C. -2.33.
D. -3.33.
Answer: C
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"U.S. exports will increase as a result of joined CAFTA," is an example of a ________ statement, while "The U.S. should join CAFTA," is an example of a ________ statement.
A. structural policy; fiscal policy B. positive; normative C. normative; positive D. monetary policy; fiscal policy
During 1998-2001 the government budget
A) moved deeper into deficit and caused a substantial increase in borrowing from foreign investors. B) moved into surplus but the beneficial effect was largely offset by a drop in household saving. C) was balanced and the inflow of capital from foreign lenders was finally stopped. D) moved into surplus and resulted in large capital outflows from the United States.
Unique Creations has a monopoly position in magnometers. If the marginal cost for a magnometer is $50 and the price elasticity for magnometers is -4, what is the optimal monopoly price?
a. $37.50 b. $41.25 c. $66.67 d. $75.00 e. $82.50
In the long-run perfectly competitive equilibrium, firms produce at the minimum of average total cost.
Answer the following statement true (T) or false (F)