Which of the following is true?
A) All economists agree that the tax multiplier is greater than the government spending multiplier.
B) All economists agree that the tax multiplier is smaller than the government spending multiplier.
C) There is disagreement among economists regarding the size of the tax multiplier relative to the size of the government spending multiplier.
D) In the standard Keynesian textbook analysis, the tax multiplier is greater than the government spending multiplier.
E) c and d
C
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Mars Inc produces 100,000 boxes of Snickers bars which sell for $4 a box. If variable costs are $3 per box, and it has $150,000 fixed operating costs, in the short run, it should
A) shut down as fixed costs are not being covered. B) keep producing as profits are $50,000. C) keep producing as variable costs are being met. D) keep producing as total costs are being recovered.
Assume that a multinational company produces components in country A and ships them to a subsidiary in country B. In order to increase its profits
A) the company should charge a high transfer price for the components if income taxes in country B are higher than in country A. B) the company should charge a low transfer price for the components if income taxes in country B are higher than in country A. C) the company should charge a high transfer price for the components if income taxes in country A are higher than in country B. D) None of the above
Given a typical demand curve and a decline in price, the consumer who wishes to maximize total utility must increase the quantity purchased of a good to arrive at an optimal MU = P point
a. True b. False Indicate whether the statement is true or false
The essential-industry argument holds that industries with potential export capabilities should be protected.
a. true b. false