If consumers spend 75 cents out of every extra dollar received, the:
A. MPS is 0.75.
B. MPC is 0.25.
C. Multiplier is 4.
D. Multiplier is 7.5.
C. Multiplier is 4.
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A firm has $200 million in total revenue and explicit costs of $190 million. Suppose its owners have invested $100 million in the company at an opportunity cost of 10 percent interest rate per year. The firm's economic profit is:
A. $400 million. B. $100 million. C. $80 million. D. zero.
In the era of free agency, small market franchises in baseball
A. can only make money when they win games. B. often must choose between making money and winning games. C. will lose money regardless of whether they win games. D. will make money whether or not they win games.
________ is a cost or benefit resulting from some activity or transaction that is imposed or bestowed on parties outside the activity or transaction.
A. Utility B. An externality C. A provisional injunction D. Marginality
The economy was expanding during all of the years that I was a student, but as soon as I graduated, the economy contracted. Therefore, the labor market was waiting until I started looking for a job to contract. This statement is an example of the
A. ceteris paribus fallacy. B. fallacy of logic. C. post hoc, ergo propter hoc fallacy. D. fallacy of inductive reasoning.