If the MPC is .6, the multiplier is
A. .4.
B. .6.
C. 1.
D. 2.5.
D. 2.5.
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Cyclical unemployment occurs
A) with economic fluctuations; it increases during bad times and decreases during good times. B) because of a mismatch between the jobs that are available in the economy and the skills of workers seeking jobs. C) because the government labels some people who aren't really in the labor force as unemployed. D) naturally during the normal workings of an economy, as people change jobs, move across the country, etc.
The output level that occurs in any market that is in equilibrium:
a. is the quantity where the supply curve intersects the y-axis. b. is the quantity where the demand curve intersects the x-axis. c. is the quantity at an output level where buyers will pay more than suppliers require. d. is an output level where buyers will not pay as much as suppliers require. e. is the quantity where the demand and supply curves intersect each other.
Karl can produce either 10 tons of oranges or 5 tons of apples in a year, while Adam can produce either 5 tons of oranges or 10 tons of apples. Which of the following is true? a. Adam has an absolute advantage in oranges and a comparative advantage in apples. b. Karl has an absolute advantage in oranges and a comparative advantage in oranges. c. Karl has an absolute advantage in both apples
and oranges. d. Karl has an absolute advantage and a comparative advantage in apples.
The money we pay for a good or service
a. generally exceeds its opportunity cost. b. generally equals its opportunity cost. c. has no part in determining its opportunity cost. d. generally equals two-thirds of its opportunity cost. e. generally is only part of its opportunity cost.