Suppose that the marginal propensity to save (MPS) equals 0.8. The value of the multiplier would be
A) 0.2. B) 0.8. C) 1.25. D) 5.0.
C
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A gasoline tax to finance highways is a fairly good example of democratic decision-making resulting in the efficient level of output
a. True b. False
In a perfectly competitive market with 100 identical firms producing at market price p1
A) the supply curve is flatter than if there were only 50 identical firms. B) the supply curve is more elastic than if there were only 50 identical firms. C) the firms have identical marginal costs. D) All of the above.
Economics
a. is a narrowly focused discipline. b. is a broad-ranging discipline. c. concerns itself only with the U.S. economy. d. says little about "everyday life." e. deals with minor problems.
A highly charitable person, such as Mother Theresa, will be influenced by
a. changes in benefits, but not costs. b. changes in costs, but not benefits. c. both changes in benefits and costs. d. neither changes in benefits nor costs.