If the slope of a linear consumption schedule increases in a private closed economy, then it can be concluded that the
A. income has decreased.
B. MPS has increased.
C. MPC has increased.
D. income has increased.
Answer: C
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Which of the following is likely to happen when the interest rate falls?
A) The volume of economic activity will reduce. B) The labor demand curve will shift to the left. C) Equilibrium wage rate will fall. D) The labor demand curve will shift to the right.
When 2,000 hamburgers per day are produced, the marginal social benefit is $1.50 and the marginal social cost is $1.00. And when 7,500 hamburgers per day are produced, the marginal social benefit is $1.00 and the marginal social cost is $1.50
The efficient production quantity of hamburgers is ________ a day. A) more than 7,500 B) 7,500 C) between 2,000 and 7,500 D) 2,000
You are given the following information on the macroeconomy:
Consumption: 200 + 0.75Y Investment: 100 + 0.10Y Government Spending 500 Exports 100 Imports 50 + 0.25Y Compute the equilibrium level of income, the size of the multiplier, and the change in equilibrium income for an increase in autonomous consumption of $50 million.
In long-run equilibrium in perfect competition, the entry and exit of firms will drive economic profits to zero
a. True b. False Indicate whether the statement is true or false