If the MPS is 0.1 and the income tax rate is 0.33 the multiplier, k, is approximately
A) 2.5.
B) 2.0.
C) 10.
D) 3.
A
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Which of the following abilities should an economic model possess?
a. It should lower the time cost of information collection. b. It should help individuals to discern the information that matters for a problem. c. It should be able to process both untrue or impossible to verify information as well as correct information in the data set. d. It should suggest accurate solutions for a problem.
In a command economy, decisions about how to allocate resources are made: a. based upon tradition
b. by a central planning board. c. by individuals and firms interacting in markets coordinated by a price system. d. by a lottery system.
The type of human capital formation that occurs in the business sector is called
A. vocational education. B. business education. C. on-the-job training. D. productivity enhancement.
Related to the Economics in Practice on page 704: Of the children under 5 years of age in the world who are characterized as extremely short due to malnutrition, one half are in
A. Asia. B. Africa. C. South America. D. Eastern Europe.