If, in an economy, a $200 billion increase in consumption spending creates $200 billion of new income in the first round of the multiplier process and $160 billion in the second round, the marginal propensity to consume and the multiplier are, respectively
A. 0.8 and 5.0.
B. 0.2 and 1.25.
C. 0.4 and 2.5.
D. 0.4 and 1.67.
Answer: A
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How does the demand curve perceived by a monopolist compare with the market demand curve?
A.One has a horizontal demand curve, the other is vertical. B.Both are horizontal C.One has a vertical demand curve, the other is downward sloping. D.They are essentially the same
Suppose a country operates on its production possibility frontier when it produces 1000 books and 1000 tables. The combination of ________ reflects ________
A) 500 books and 1000 tables; an inefficient but attainable point. B) 500 books and 500 tables; an attainable and efficient point. C) 1000 books and 1500 tables; a free lunch. D) 1000 books and 1000 tables; a free lunch. E) 1000 books and 500 tables; an efficient point.
Robinson Crusoe's decision to produce more capital goods and fewer consumer goods in a given period causes:
a. a decrease in the resources available in its economy. b. an increase in economic growth in future periods. c. a decrease in economic growth in future periods. d. no change in the availability of resources in its economy. e. a decrease in the ability to produce goods in the next period.
Refer to the above figure. If a price floor of $5 was set
A. the quantity sold would be 80 units. B. there would be a shortage of 20 units. C. the quantity demanded would be 100 units. D. the quantity sold would be 60 units.