Using the multiplier effect, if the government increases purchases on transportation equipment by $5 billion, which of the following is the most likely change in total purchases?
a. an increase of $5 billion
b. an increase of $15 billion
c. a decrease of $5 billion
d. a decrease of $15 billion
b. an increase of $15 billion
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If Taco Bell decides to produce more tacos and fewer burritos, Taco Bell is answering the ________ part of one of the two big economic questions
A) "what" B) "why" C) "when" D) "scarcity"
A society with a large unskilled labor force will most likely practice
a. machine-intensive farming methods b. labor-intensive farming methods c. machine and labor-intensive farming methods d. importing food to avoid famine
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point B to Point C so that an additional 20 OLED televisions could be produced, production of LCD televisions would have to be reduced by
A. more than 30. B. exactly 60. C. fewer than 30. D. exactly 30.
According to the classical system, saving is a function of
a. income. b. the real interest rate. c. the real wage. d. the profitability of firms. e. all of the above.