Which of the following statements is positive?
A. When the Federal Reserve increases the money supply, interest rates decrease.
B. Higher taxes are needed to support education.
C. Large budget deficits should be avoided.
D. A tax cut that benefits low-income households is acceptable.
Answer: A
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The above table contains information about the nation of Syldavia. There are no income taxes or imports in this nation. The marginal propensity to consume in Syldavia is equal to
A) 0.80. B) 5.00. C) 0.75. D) 0.20. E) 0.40.
"LIBOR" is the rate at which U.S. banks
A) lend to their best customers. B) borrow in the Eurodollar market. C) lend in the Eurodollar market. D) borrow in the jumbo CD market.
In a market with positive externalities,
A) the efficient level of production is less than what competition will obtain. B) the efficient level of production is equal to what competition will obtain. C) the efficient level of production is more than what competition will obtain. D) there cannot be an efficient level of production.
If AVC is $10 when P = MC, a firm
A) will have positive economic profits if price is greater than $10. B) is producing too little output. C) should shut down if price is less than $10. D) is experiencing economies of scale.