If the MPC is 0.9, then an increase in taxes of $100 can be expected to __________ consumption by the amount of __________
A) increase; $90
B) decrease; $90
C) increase; $100
D) decrease; $100
A
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Each seller's opportunity costs are:
A. determined monetarily, which is why they can never be zero. B. determined by a number of factors, none of which is monetary. C. determined by a number of factors, including monetary considerations. D. less than the monetary costs of manufacturing the good or service.
An expansion of the money supply, ceteris paribus, will
a. raise interest rates b. reduce investment demand c. contract aggregate demand d. lower prices e. increase investment in the economy
Gary is a tailor who creates custom-made business suits. His yearly total cost (TC) is $28,000. His average total cost (ATC) for the year is $400. How many business suits does Gary's business make in a year? a. 50 b. 20 c. 30 d. 70 e. none of the above d. 70 ATC: TC / ? units 400 = 28,000 / Q
a. 50 b. 20 c. 30 d. 70 e. none of the above
We would expect a cartel to achieve:
A. both allocative efficiency and productive efficiency. B. allocative efficiency but not productive efficiency. C. productive efficiency but not allocative efficiency. D. neither allocative efficiency nor productive efficiency.