In exhibit 9-2, the marginal propensity to consume equals
What will be an ideal response?
0.70
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When long-run average cost increases as output increases there are
A) economies of scale. B) diseconomies of scale. C) constant returns to scale. D) none of the above.
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Which two sources of revenue comprise most of federal government revenue?
A. Individual income tax and corporate income taxes B. Corporate income taxes and excise taxes C. Corporate income taxes and social security taxes and contributions D. Individual income tax and social security taxes and contributions
________ is (are) most likely a variable cost for a firm.
A. Monthly health insurance expenses for employees B. The monthly lease payment on a delivery truck that is leased for three years C. The plumbing company's annual licensing fee D. The quarterly payments for a two-year maintenance contract for copy machines