If the MPS is 0.4, the government spending multiplier is
A. 0.6.
B. 2.5.
C. 4.
D. 5.
Answer: B
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This is a question about "economic" efficiency: Prior to the 1960s, Catholic masses were officially conducted throughout the world only in the Latin language
Since the Vatican II reforms, Catholic masses are now generally conducted in the language spoken and understood by the local parishioners. What can an economist conclude? A) Catholic church authorities didn't like Latin anymore. B) Catholic church authorities once thought the use of Latin was efficient; during Vatican II the authorities in power decided it was inefficient. C) Catholic church parishoners didn't like Latin anymore. D) Nothing, because decisions related to religion are non-economic.
To internalize a consumption externality in the market for a toxic chemical
a. a unit subsidy can be offered on production equal to the MEC b. a unit tax can be imposed equal to ?MEB c. a tax should be set equal to the MSC d. none of the above
A decrease in the price level makes consumers feel wealthier, so they purchase more. This logic helps explain why the aggregate demand curve slopes downward
a. True b. False Indicate whether the statement is true or false
Over time, GDP may increase as the result of either (i) expansion in the quantities of goods produced or (ii) higher prices. Which of the following is true
What will be an ideal response?