Assume that MPS is 0.4. If spending increases by $8 billion, then real GDP will increase by
A. $8 billion.
B. $15 billion.
C. $20 billion.
D. $13.3 billion.
Answer: C
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In this graph, what are the coordinates for point B?
a. ATC and q*
b. ATC and 0
c. P* and q*
d. P* and 0
Refer to Figure 16.4. If the economy is initially in equilibrium at P3 and Q1, the appropriate policy to move the economy to an equilibrium at P1 and Q2 would be to
A. Increase government regulation. B. Increase the marginal tax rate. C. Increase the minimum wage rate. D. Increase the investment in human capital.
Economies of scale occur when the long-run average cost curve slopes downward.
Answer the following statement true (T) or false (F)
A medical researcher suggests that the new flu shot will prevent all forms of the flu, but it was never tested or proved to be true. Which of the following antitrust acts are being violated?
A. Clayton Act B. Sherman Act C. Federal Trade Commission Act D. No Antitrust law is being violated