Find the tax multiplier if the MPC is 0.75.
A. ?4.
B. ?3.
C. 0.33.
D. 3.
Answer: B
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Would the use of money, as opposed to barter, increase the growth rate of real GDP in a country over time? Why or why not?
What will be an ideal response?
In peak-load pricing, the off-peak profit-maximizing quantity is ________ than the profit-maximizing quantity during the peak period and the profit-maximizing price during the off-peak period is ________ than the profit-maximizing price during the peak period.
A) less; more B) more; more C) less; less D) more; less
The marginal revenue product is: a. the value of all the final goods and services produced by a firm
b. the value that an worker contributes to a firm. c. an increase in the profit of a firm with an increase in the output by one unit. d. the output per unit of worker employed by a firm. e. the value that all the unskilled workers contribute to a firm.
Which is a characteristic of monopolistic competition?
A. Standardized product. B. Absence of nonprice competition. C. A relatively small number of firms. D. Relatively easy entry.