If the marginal propensity to consume is 0.75 and autonomous consumption spending will decrease by $30 billion, by how much would net taxes need to decrease in order to have no change in output? (Ignore any timing issues.)
a. $60 billion
b. $30 billion
c. $90 billion
d. $120 billion
e. $40 billion
E
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AllClean knows that it produces and sells very effective laundry detergent. NotQuiteWhite knows that it produces and sells ineffective laundry detergent. According to the signaling theory of advertising,
a. both AllClean and NotQuiteWhite have incentives to spend large amounts of money on advertising their products. b. AllClean has an incentive to spend a large amount of money on advertising its detergent, but NotQuiteWhite does not. c. NotQuiteWhite has an incentive to spend a large amount of money on advertising its detergent, but AllClean does not. d. neither AllClean nor NotQuiteWhite has an incentive to spend a large amount of money on advertising their detergents.
International trade occurs because the opportunity cost of producing specific goods differs across:?
a. firms
b. individuals
c. regions of the U.S.
d. countries
e. households
A util represents a unit of measurement for the:
A. dollars a consumer spends on a good. B. profit a firm makes from producing a good. C. way a consumer will respond to a change in price. D. happiness a person obtains from consuming a good.
Refer to the below demand graph for a farm product. It suggests that farmers' revenues or incomes tend to:
A. Fall when the demand for the farm product increases
B. Fall when the supply of the farm product increases
C. Increase when the supply of the farm product increases
D. Be constant when supply of the farm product changes