If the MPC is 0.75, the tax multiplier is
A. -2.5.
B. -3.
C. -4.
D. -5.
Answer: B
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If unemployment is the most significant problem in the economy, which of the following actions would be an appropriate fiscal policy response?
a. decrease taxes b. decrease government purchases c. decrease the federal deficit d. all of the above
Output for a simple production process is given by Q = KL, where K denotes capital and L denotes labor. The price of labor is $10 per unit and the price of capital is $2 per unit.If at the current level of production the marginal product of labor is 4 while the marginal product of capital is 2, then in order to minimize your costs of production you should use
A. more of both inputs. B. the same amount of both inputs. C. more capital and less labor. D. more labor and less capital.
Evaluate computer database dating services in terms of efficiency. Why have many people avoided these services despite their vast amounts of information? Why might these services become more popular in the future?
What will be an ideal response?
Refer to the graph shown.
As a result of a tariff T imposed on speedboats, the price domestic consumers pay for speedboats probably will likely be:
A. P1. B. P2. C. P3. D. P4.