In Econland autonomous consumption equals 700, the marginal propensity to consume equals 0.80, net taxes are fixed at 50, planned investment is fixed at 100, government purchases are fixed at 100, and net exports are fixed at 40. Autonomous expenditure equals:
A. 990.
B. 890.
C. 900.
D. 940.
Answer: C
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The only way to eliminate all competition from social life would be through
A) abolishing money. B) eliminating all scarcity. C) eliminating all selfishness. D) giving government the power to control everything. E) making everyone as concerned about others as they are about themselves.
In a liquidity trap, the
A) IS curve is vertical. B) IS curve is horizontal. C) LM curve is vertical. D) LM curve is horizontal.
If the players in the figure shown act in their own self-interest, then we know that Adidas will earn:
A. $2 million.
B. $8 million.
C. $6 million.
D. $10 million.
A group of firms that colludes to limit competition by assigning production quotas and setting a uniform price for all is called a(n)
a. conglomerate b. balanced oligopoly c. cartel d. oligopoly with kinked demand curves for each of the firms in the collusion e. unbalanced oligopoly