Suppose C = 1000 + .9Y, G = 400, I = 100, (X – IM) = 0, and there are no income taxes. If government purchases increase by 100, equilibrium GDP will
a) rise by 25%
b) rise by a factor of 10
c) rise by 90
d) rise by 100
e) rise by 1,000
e) rise by 1,000
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When a consumption schedule is plotted as a straight line, the slope of the consumption line is
A. horizontal. B. vertical. C. greater than the slope of the 45º line. D. less than the slope of the 45º line.
________ is the market value of the final goods and services produced within the borders of a country during a particular period of time
A) Net Product Value B) Gross National Product C) Total Product D) Gross Domestic Product
According to the economic way of thinking,
A) the private sector is more important than the public sector. B) the public sector is more important than the private sector. C) the public sector cannot be adequately studied using economic theory. D) people in society strive to advance the projects they are interested in, and they will advance their interests through market institutions or the institutions of government.
Which of the following questions or statements regarding medical school is normative?
A) How do changes in expected future incomes affect the decisions of medical students about which specialty to choose? B) What role does tuition play in a student's decision about whether to attend medical school? C) Have tuition increases had a large effect or a small effect on the number of applications to medical school? D) Medical students who enter specialized fields make a larger contribution to society than do student who enter primary care.