When economists talk about "optimal outcomes" in the marketplace, they mean that
A. All the consumer desires are satisfied and business profits are maximized.
B. The allocation of resources by the market is likely to be the best possible, given scarce resources and income constraints.
C. Everyone who wants a good or service can have it.
D. The allocation of resources by the market is perfect.
Answer: B
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If a $2 billion increase in investment brings about a $5 billion increase in equilibrium expenditure, we know that the multiplier equals
A) 4. B) 3. C) 10. D) 5. E) 2.5.
Why do airlines often charge students and vacationers a lower price than business travelers?
a. It is cheaper to provide airline service to students and vacationers than to business travelers. b. The demand of business travelers is generally more elastic than the demand of students and vacationers. c. The demand of students and vacationers is generally more elastic than the demand of business travelers. d. Airlines prefer to deal with students and vacationers rather than business travelers.
Refer to the information provided in Table 21.5 below to answer the question(s) that follow. Table 21.5
Refer to Table 21.5. The value for gross private domestic investment in billions of dollars is
A. 360. B. 400. C. 440. D. 510.
An increase in the public debt and its subsequent repayment will tend to:
A. Mildly reduce the income inequality in the U.S. B. Mildly increase the income inequality in the U.S. C. Have no impact on the income distribution in the U.S. D. Make the income distribution more equitable in the U.S.