Which two aggregate expenditure schedules AE in the diagram for a private closed economy have the same MPC, assuming investment is the same at each level of income?
A. AE 1 and AE 2 .
B. AE 2 and AE 3 .
C. AE 1 and AE 4 .
D. AE 3 and AE 4 .
A. AE 1 and AE 2 .
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Producing at a point inside the production possibilities curve
A. Suggests we are forgoing the ability to produce more of both goods. B. Means society must be using its resources efficiently. C. Is unattainable given the present level of technology. D. Is feasible when the nation is at war but not feasible when the nation is at peace.
In Figure 10-5 above, suppose that the population growth rate declines. This causes a movement of the steady-state point such as from points
A) A to B. B) D to B. C) D to C. D) A to C. E) A to D.
Government programs such as Medicare substantially subsidize health care purchases by some consumers in the U.S. economy. Who benefits from these subsidies? How do they affect the price of health care? If you are not a recipient of this program, are you made better or worse off by the subsidy? Explain
If the price of hamburger increases, the substitution effect works to
a. decrease the quantity of hamburger supplied. b. increase the number of hamburger buns demanded. c. decrease the quantity of hamburger demanded. d. increase the number of hamburger buns supplied.