Wealth
A) is the same as income.
B) includes assets such as houses, stocks, and bonds.
C) does not include tangible objects.
D) is a flow and not a stock.
B
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If firms in a price-taker industry were forced to install antipollution devices that increased their production costs, we should expect
A) the cost curves for the firms in this industry to shift downward. B) the market price of the product to decrease. C) that the firms in the industry would suffer long-run economic losses. D) that the firms in the industry would earn normal economic profits in the long run, as the higher production costs were passed along to consumers in the form of higher prices.
When disposable income is $8 trillion, consumption expenditure is $5 trillion; when disposable income is $5 trillion, consumption expenditure is $3 trillion. The MPC is
A) (5 - 3 ) ÷ (8 - 5 ) = 0.667. B) (8 - 5 ) ÷ (5 - 3 ) = 1.333. C) (5/8 + 3/5 ) = 1.225. D) (5 + 3 ) ÷ (8 - 5 ) = 2.667. E) (5 + 3 ) ÷ (8 + 5 ) = 0.615.
In the above figure, CBL is the cost of breaking the law. If it is illegal to sell, but not illegal to buy, then the price per unit will be
A) $500. B) $400. C) $300. D) $200.
Some economists argue that the increases in aggregate demand for output spurred by wartime spending, complemented by the strong spending in the private sector, impacted the U.S. economy by
(a) increasing production and employment. (b) increasing employment and income. (c) increasing income, thus fueling additional spending. (d) contributing to all of the above.