A tariff on imported peanuts ________ the quantity of peanuts imported and ________ the domestic price of peanuts
A) decreases; decreases
B) decreases; increases
C) increases; lowers
D) does not change; increases
B
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The position of the Keynesian aggregate demand schedule does not depend on the
a. level of government spending. b. level of tax collections. c. level of autonomous investment expenditures. d. quantity of money. e. the price of inputs such as oil.
Zane's Vanes is a service that restores old weather vanes. Zane has just spent $125 purchasing a 1920s-era weather vane which he expects to restore and sell for $500 once the work is completed. After having spent $125, Zane realizes that he will need to
spend an additional $200 on materials to complete the restoration. Alternatively, he can sell the weather vane without restoring it for $200. What is his marginal benefit if he sells the weather vane without restoring it? A) $75 B) $125 C) $200 D) $300
Which of the following is an example of an ordinary private good?
A) Furniture B) The Internet C) Water D) Cable TV
In the simple accelerator theory an increase in expected sales will
A) lead to an increase in net investment. B) not necessarily lead to an increase in net investment. C) lead to an immediate increase in replacement investment. D) lead to an increase in net investment in the following period.