The expenditure multiplier
a) is defined as the inverse of the savings rate
b) is greater than zero but less than one
c) does not depend on consumption behavior
d) is larger in a country with a large MPC than in a country with a small MPC
e) determines the effect on consumption from an increase in disposable income
d) is larger in a country with a large MPC than in a country with a small MPC
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The tax-induced difference between the price paid by consumers and the price received by producers is
A. the tax difference. B. the tax wedge. C. the statutory incidence. D. the supply side effect.
Suppose the accompanying table describes the demand for a good produced by monopolist. PriceQuantity$101$92$83$74$65$56$47The monopolist's total revenue from selling 3 units is ________, and the monopolist's marginal revenue from selling the 3rd unit is ________.
A. $52; 1 B. $24; 6 C. $24; 8 D. $28; 8
In the U.S. economy, sole proprietorships account for over half the firms and over half of total sales revenue.
Answer the following statement true (T) or false (F)
Suppose the price of A increases by 10 percent while the quantity demanded of B does NOT change. We would conclude that
A) the two goods are substitutes, but the cross elasticity of demand is not large. B) the two goods are complements, but the cross elasticity of demand is not large. C) the two goods are perfect substitutes. D) the two goods are not related.