"If the marginal tax rate is high enough, the expenditure multiplier can be negative." Is the previous statement correct or incorrect?
What will be an ideal response?
The statement is incorrect. The higher the marginal tax rate, the smaller the expenditure multiplier, but the expenditure multiplier always remains positive.
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The table below shows the relationship between the number of times you get your car washed each month and your total monthly benefit from car washes. Each car wash costs $15.Number ofCar WashesPer MonthTotal MonthlyBenefit fromCar Washes0$01$202$363$484$565$60What is the marginal benefit of the 3rd car wash each month?
A. $12 B. $4 C. $48 D. $16
Economic growth was stimulated by suburbanization
A. in the first five years after World War II. B. in the 15 years following World War II. C. from the mid 1960s to the mid 1970s. D. after the Persian Gulf War.
Which of the following is an advantage to society of monopolistic competition?
A) production at the lowest possible average cost B) product variety C) only essential costs are incurred D) long-run profitability E) The firms have excess capacity so they are are always willing to increase their production.
Explain what are the factors that shift the DD Schedule
What will be an ideal response?