If the MPC is 0.80, and if the goal is to increase real GDP by $200 million, then by how much would government spending have to change to generate this increase in real GDP?
A. $240 million.
B. $200 million.
C. $180 million.
D. $40 million.
Answer: D
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Natural monopolies are usually found in industries with
a. low fixed costs. b. large economies of scale. c. a normal profit. d. constant economies of scale.
A progressive tax means
a. people who make more money pay less total taxes b. the marginal tax rate increases as income increases c. the percentage of income paid out decreases as income increases d. people who are poor receive the proceeds of the tax e. the same thing as a flat-rate tax
In the long run, an economy's production of goods and services depends on its supply of a. labor, natural resources, capital, and available technology. b. labor, natural resources, and capital only
c. labor, and natural resources only. d. labor only.
What are the five main determinants of consumption spending? Which of these is the most important?
What will be an ideal response?