If investment increases by $10 billion and the economy's MPC is .8, the aggregate demand curve will shift:
A. leftward by $50 billion at each price level.
B. rightward by $10 billion at each price level.
C. rightward by $50 billion at each price level.
D. leftward by $40 billion at each price level.
C. rightward by $50 billion at each price level.
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The price for a unit of labor is the wage rate. What happens to the quantity of labor demanded if the wage rate increases?
A. It increases. B. It decreases. C. It does not change. D. The outcome depends upon the supply of the good.
Which of the following assets is most liquid?
a. Funds in a checking account. b. A car. c. A home. d. A municipal bond.
How many members are there on the Board of Governors of the Federal Reserve?
a. 12 b. 50 c. 7 d. 4 e. 14
Suppose, that your community has identified five different areas of town that are polluted and has assigned clean-up projects to each area: projects A through E in the table below. For simplicity, let's assume that the marginal cost of each project is $75,000. The marginal benefit to the community, however, is different for each and listed in the table below. If your city has enough money to pay for all five projects, which areas should it clean up?ProjectMarginal BenefitA$150,000B125,000C100,000D75,000E50,000
A. A, B, C and D B. C, D, and E C. D and E D. E