If the marginal propensity to consume (MPC) is 0.80, and if policy makers wish to increase real GDP $200 billion, then by how much would they have to change taxes?
a. ?$240 million.
b. ?$200 million.
c. ?$180 million.
d. ?$50 million.
d
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Which of the following statements about the elasticity of demand for a monopolist is TRUE?
A) Since a monopolist produces a good with no close substitutes, the price elasticity of demand for the good is zero. B) A monopolist produces a good with demand that is perfectly inelastic because people can not do without the good. C) Since every good has some substitute, even if imperfect, the demand for a good produced by a monopolist will not have zero price elasticity. D) Since the demand curve of a monopolist is downward sloping, the demand for the good must be inelastic.
Why is it easier to raise $1 million in voluntary contributions for medical research into a deadly disease like cancer than it is to raise the same amount for space exploration?
What will be an ideal response?
The first type of labor unions that emerged in the United States were
A) industrial unions. B) craft unions. C) professional unions. D) transportation unions.
Monopolistically competitive firms experience "excess capacity" in the short run but not in the long run.
Answer the following statement true (T) or false (F)