A $0.2 trillion increase in government purchases increases the quantity demanded by $1.0 trillion, the price level remaining constant. This additional spending reflects the _____ effect.
Fill in the blank(s) with the appropriate word(s).
simple spending multiplier
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From an economic perspective, when a consumer decides to buy more life insurance, the consumer has most likely concluded that the marginal
A. benefit of more insurance coverage is greater than the total benefit. B. cost of more insurance coverage is negative. C. cost of more insurance coverage is equal to the payment for the extra coverage. D. cost of more insurance coverage is less than the marginal benefit.
How do external costs prevent a competitive market from allocating resources efficiently?
What will be an ideal response?
Which of the following can increase customer awareness?
a. Advertising b. Promotional activities c. Service d. All of the above
The losers when the United States institutes trade restrictions include
a. U.S. consumers of imported goods, U.S. producers who use imported intermediate goods, and, if other countries retaliate, U.S. exporters b. U.S. producers of goods that compete with imported goods only c. U.S. consumers of imported goods and U.S. producers of goods that compete with imported goods d. all U.S. producers of all goods and U.S. exporters e. only U.S. exporters