In Figure 3-4 above, the multiplier is
A) 2.5.
B) 0.6.
C) 0.4.
D) 1.67.
E) 1.5.
A
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“A producer wanting to employ optimal quantity of inputs should choose the point where diminishing returns set in.” True or false?
What will be an ideal response?
Dan Heath is the owner of Plain Truth Advertising. He is attempting to design salary systems for his employees, most of whom are sales agents. To get a good system, he needs to recognize the trade-offs between:
A. benefits and salaries. B. benefits and incentives. C. risk-sharing and incentives. D. risk-sharing and benefits.
Identify each of the following as nominal or real variables
a. the physical output of goods and services b. the overall price level c. the dollar price of apples d. the price of apples relative to the price of oranges e. the unemployment rate f. the amount that shows up on your paycheck after taxes g. the amount of goods you can purchase with the wage you get each hour h. the taxes that you pay the government
Which of the following is an example of a negative externality? a. A Japanese company exports cars to the U.S., which causes American workers to lose their jobs
b. An employee of a chemical company spills acid on his arm, causing severe damage. c. John plants fruit trees in his front yard, which attracts bees, which sting neighbor Mary. d. Sally buys coffee at McDonald's, spills some and burns her hand. e. Jack attempts to fix his roof, falls off, and breaks his leg.