If you were told the MPC was = 0.75 and the government engaged in a spending increase of $400B, then the change in GDP would be:
A. $400B.
B. $1600B.
C. $300B
D. $1200B
B. $1600B.
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Unions can only achieve wage gains by sacrificing employment.
Answer the following statement true (T) or false (F)
Which of the following is the strongest criticism of the model of the rational consumer maximizing marginal utility per price within the constraints of a budget?
a. It is difficult for consumers to know the exact utility of the products they are buying. b. It is difficult for consumers to know the exact price of the products they are buying. c. It is difficult for consumers to accurately calculate the budget they have available to spend. d. It is difficult for consumers to accurately calculate the demand for the products they are buying.
In a free market system, competition generates economic efficiency only when
A) individuals take into account the full opportunity cost of their actions. B) consumers are motivated by a sense of the greater good, not their own self-interest. C) firms are motivated by a sense of the greater good, not their desire for profit. D) economic decisions are taken out the hands of individuals and placed in the hands of government officials.
Given the information in the table below, find the marginal utility and the total utility.
