If the MPC is 0.80, then a change in disposable income of $60 billion will lead to an initial change in consumption of
A. $30 billion.
B. $42 billion.
C. $48 billion.
D. $60 billion.
E. $70 billion.
Answer: C
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The above figure shows three different supply-and-demand graphs. Which graph best represents the market for the air we are currently breathing?
A) Graph A B) Graph B C) Graph C D) None of the above.
The international unit of accounting used by the International Monetary Fund (IMF) is called
A) the Eurodollar. B) the IMF dollar. C) the quota subscription. D) special drawing rights.
Sizable economic profits can persist over time under monopoly if the monopolist
a. produces that output where average total cost is at a maximum. b. is protected by barriers to entry. c. operates as a price taker rather than a price maker. d. earns revenues that exceed variable costs.
Higher interest rates will, all else equal:
A. increase the extraction cost of a resource. B. increase the user cost of extracting a resource. C. reduce the user cost of extracting a resource. D. have no impact on either the user cost or extraction cost of a resource.