In Figure 8.1, an increase in government spending, ceteris paribus, is best represented as a movement from point
A. A to point C.
B. B to point C.
C. A to point B.
D. C to point A.
Answer: C
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The price of a cowboy hat is $100. Willie can produce a hat at a marginal cost of $130, Waylon can produce at a marginal cost of $100, and Merle can produce at a marginal cost of $85. Which of the following statements is correct?
A) The sum of producer surplus is $15. B) All three of these sellers will gain producer surplus from selling a hat. C) The sum of producer surplus is $30. D) Willie's producer surplus is $30. E) The sum of producer surplus is $45.
Your neighbor likes to blast 1970's rock music and the louder the better. The loud music imposes a cost on you because it disrupts your study of economics. Let D stand for the volume of his music in decibels, B for his benefits and C for your costs, where B and C are measured in dollars. For any given volume, D, your neighbor's benefit is B = 0.63D - 0.002D2 and your cost is C = 0.06D + 0.001D2. What is the efficient volume, D?
A. 90 B. 95 C. 115 D. 345
The F-statistic is an alternative measure of goodness-of-fit of an estimated regression equation and defined as the:
A) variation not explained by the regression equation relative to the variation explained. B) variation explained by the regression equation to the variation not explained. C) variation explained. D) variation not explained.
The U.S. Federal Reserve
A) has complete independence from the U.S. government. B) acts within the boundaries established by Congress and the president, but has flexibility in meeting the goals of monetary policy. C) is a government agency run by the Treasury Department and under the strict control of Congress. D) is run by elected officials but is only subject to oversight by the U.S. president.