Every economic model should include money as a variable. This statement is
A) true, because every transaction in the economy uses money.
B) true, because the federal reserve is very important.
C) false, because some transactions in the economy are accomplished without money.
D) false, because a model can get unnecessarily complex if it includes money.
D
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A general formula for the multiplier is 1/(1-MPS)
Answer the following statement(s) true (T) or false (F)
Among these countries, which has the lowest hourly wage and fringe benefits in manufacturing?
A. Germany B. Britain C. Canada D. United States
Refer to the above table. If the price of the good produced is $5, the marginal revenue product of the 7th worker is
A. $275. B. $5000. C. $125. D. $55.
The fair rules approach to fairness requires
A) that consumer surplus equal producer surplus. B) income transfers from rich to poor. C) property rights and voluntary exchange. D) that marginal cost equal marginal benefit. E) that consumer surplus exceed producer surplus because there are more consumers than producers.