If the MPC = 0.8, and intended investment rises from $100 to $150, national income will increase by
a. $50
b. $125
c. $20
d. $250
e. $200
D
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For a given level of inflation, if there is a greater reluctance by foreigners to purchase domestic goods, then the ________ shifts ________.
A. short-run aggregate supply line; downward B. aggregate demand curve; right C. short-run aggregate supply line; upward D. aggregate demand curve; left
Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in the above figure. Which of the following bundles are in Max's opportunity set?
A) a, b, c B) b, d, e C) a, b, d D) None of the above
Which of the following is NOT a government response to asymmetric information?
A) liability laws B) social regulation C) manufacturer's warranties D) government licensing
Two economists created fake resumes with either common African-American names such as Lakisha and Jamal or common white names such as Emily and Greg. After sending them to potential employers with "Help Wanted" ads in Boston and Chicago newspapers, they found that
a. black employees earned 50 percent less than white employees in Chicago but that blacks and whites had similar wages in Boston. b. black employees earned 50 percent less than white employees in Boston but that blacks and whites had similar wages in Chicago. c. job applicants with white names received 50 percent more phone calls from interested employers. d. job applicants with white names received 7 percent more phone calls from interested employers.