If a $30 increase in U.S. exports to France causes a $150 increase in U.S. national income, the value of the marginal propensity to consume in France is
a. 0.80
b. 0.20
c. 2
d. not discernible given the information provided
e. 120
D
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The figure above shows a perfectly competitive firm. When the firm maximizes its profit, its total revenue is
A) $1,200. B) $900. C) $600. D) unable to be determined without more information.
The Bretton Woods exchange rate system was an example of a
A) target zone. B) managed float. C) pure gold standard. D) modified gold standard. E) floating exchange rate system.
Technological efficiency is
A) a necessary and sufficient condition for profit maximization. B) a sufficient but not necessary condition for profit maximization. C) a necessary but not sufficient condition for profit maximization. D) a theoretical construct with little connection to the real world.
An outward shift of a nation's production possibilities frontier represents
A) economic growth. B) rising prices of the two goods on the production possibilities frontier model. C) an impossible situation. D) a situation in which a country produces more of one good and less of another.