According to the IS equation, a change in which of the following will cause a change in output?
A) real interest rate
B) autonomous investment
C) marginal propensity to consume
D) all of the above
E) none of the above
D
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Which of the following gives rise to a negative externality?
A) Sudden increase in the price of wheat due to a fall in supply B) Sudden increase in the demand for diamonds leading to an increase in their price C) Deforestation leading to the extinction of many species D) Globalization leading to creation of many new job opportunities
If Korea's average annual growth rate is 9 percent and that of the United States is 4 percent, the time required for Korea's real GDP to double will be ____ less than the time required for the GDP of the United States to double
a. 3 years b. 6 years c. 12 years d. 15 years e. 10 years
If the marginal cost and marginal revenue curves intersect at two different points, then maximum profit occurs at
a. the output level where the MC curve crosses the MR curve from below b. the output level where the MC curve crosses the MR curve from above c. both points d. an output level between the two points e. an output level beyond the second point
Why would a firm price discriminate? Because price discrimination allows the firm to
a. increase consumer surplus b. create brand multiplication c. select the best consumers who are willing to pay the highest price d. convert consumer surplus into economic profit e. shift its demand curve to the right