Refer to Figure 23-2. If the U.S. economy is currently at point K, which of the following could cause it to move to point N?
A) Household wealth declines.
B) The price level in the United States falls relative to the price level in other countries.
C) The interest rate rises.
D) Congress abolishes investment tax incentives.
B
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Imagine that you are an entrepreneur, making designer t-shirts in your garage. Your total cost (in dollars) is given by the equation TC = 300 + 10Q, where Q represents the number of t-shirts you make. Your fixed cost is $________, and your marginal cost is $________.
A. 300/Q; 30 B. 300; 10Q C. 300; 10 D. 300/Q; 10
The philosopher John Rawls argued that if people could make arrangements about how society would be organized before they were born that one of the principles that we would agree upon is that social and economic inequalities are to be arranged so
that they are to be of the greatest benefit to the least-advantaged members of society. What economic strategy sounds akin to this idea? Explain.
In graph 1, there is movement from q2 to q1. What change in graph 2 causes this to happen?
a. Demand stays constant.
b. Price increases.
c. Quantity increases.
d. Market supply increases.
The MPC in the economy depicted in Figure 9.3
A. Decreases steadily as disposable income increases. B. Equals 1.0. C. Increases steadily as disposable income increases. D. Is constant.