If autonomous planned spending increases by $1 million and s = 0.2 and t = 0.1, then equilibrium income increases by
A) $5 million.
B) $3.33 million.
C) $3.57 million.
D) $2.90 million.
C
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In the long-run, a firm in monopolistic competition has
A) a price that exceeds its average total cost. B) a price that exceeds its marginal cost. C) an average total cost that exceeds its price. D) a marginal cost that exceeds its price.
Consider a society consisting of just a farmer and a tailor. The farmer has 10 units of food but no clothing. The tailor has 40 units of clothing but no food. Suppose each has the utility function U = F1/2C1/2
If the price of clothing is always $1, and the food price is currently $3, then we can conclude A) the market is at a competitive equilibrium. B) the price of food will drop towards a competitive equilibrium. C) the price of food will increase towards a competitive equilibrium. D) None of the above.
The 27-member EU negotiates trade agreements as one. The EU and Brazil have negotiated a strategic trade alliance, which is an example of a ________.
A) customs union B) global free trade agreement C) bilateral agreement D) multilateral agreement
The Employment Act of 1946 was an outgrowth of the Great Depression.
a. true b. false