If the marginal propensity to save (MPS) is 0.25, the simple multiplier is _____
a. 25
b. 75
c. 5
d. 3/4
e. 4
e
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If firms in an industry are generating knowledge that other firms can use without paying for it, this industry is characterized by
A) social costs that exceed private costs. B) social benefits that exceed private benefits. C) social costs that exceed social benefits. D) private benefits that exceed social benefits. E) social benefits that undermine private benefits.
If the demand curve facing a firm had a price elasticity of demand equal to zero and the firm raised its price, its total revenue would:
A. decrease slightly. B. fall to zero. C. not change. D. increase.
Which statement is true?
A. Because they are the only seller in the industry, the monopolist does not have to lower their price to sell more output. B. Most firms in the United States are monopolies. C. Unlike the perfect competitor, the monopolist does not necessarily produce at that output where MC = MR. D. None of these statements are true.
GDP per capita:
A. tells us about how the output is allocated in an economy. B. tells us about what you can buy with a given amount of money in that country. C. is an average income per person in an economy. D. All of these statements are true.