If the MPC is .9, how much is the multiplier?
What will be an ideal response?
Multiplier = 1/1 - MPC = 1/1 - .9 = 1/.1 = 10
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A) social welfare will increase if the ban on imports is removed. B) everyone will be better off if both ban on imports and subsidy are removed. C) social efficiency will be improved if both ban on imports and subsidy are removed. D) the deadweight loss is reduced if subsidy is removed.
When accounting profits are negative, economic profits could be:
A. positive. B. negative. C. zero. D. All of these are possible.
When the cost curves have the usual shapes, at the point where marginal cost equals average total cost,
a. average total cost is at its maximum b. marginal cost is falling c. average total cost is at its minimum d. average variable cost is falling e. the fixed cost has been fully depreciated
Suppose a negative income tax program is established at 25 percent, and a poverty threshold minimum of $15,000 is guaranteed for a family of four. If this family earned $50,000 in the workplace, the government payment to the family under this program would equal
a. $2,500 b. $1,000 c. $10,000 d. $1,500 e. zero