Assuming there is no government or foreign sector, [1 / 1-MPC] represents
A. the multiplier.
B. the consumption function.
C. break even income.
D. the saving function.
Answer: A
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The fact that indifference curves are downward sloping
A) is not true. B) follows from the fact that more is preferred to less. C) follows from the property that the consumer likes diversity in his or her consumption bundle. D) follows from the property that consumption and leisure are normal goods.
When a country that imports a particular good imposes a tariff on that good,
a. producer surplus increases and total surplus increases in the market for that good. b. producer surplus increases and total surplus decreases in the market for that good. c. producer surplus decreases and total surplus increases in the market for that good. d. producer surplus decreases and total surplus decreases in the market for that good.
A recession would be a decline in real GDP for at least
A. one business quarter. B. two business quarters. C. one business year. D. two business years.
In the definition of GDP, the words "total market value" refer to total
A) dollar value at base prices. B) dollar value at current prices. C) subjective value. D) objective value. E) a and d