Figure 1A.2Refer to Figure 1A.2. If this consumer rents zero DVDs, how many movie tickets will she purchase?

A. 0
B. 5
C. 10
D. 15


Answer: D

Economics

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In the second quarter (three-month period) of 2016, U.S. nominal GDP increased but U.S. real GDP declined. What can we conclude?

A. Real wages declined by more than real GDP. B. Nominal income declined by more than personal income. C. The price level fell by more than real GDP. D. The price level rose by more than nominal GDP.

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Which of the following government entities relies most heavily on sales taxes?

A. Local government B. State government C. Federal government D. The Social Security Administration

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The income multiplier is

a. 1/(1 – MPC) b. 1 – MPC c. 1 – MPC d. MPC e. MPC/(1 – MPC)

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Private goods are characterized by two important attributes. What are they?

a. marginality and depletability b. scalability and desirability c. repeatability and reliability d. depletability and excludability

Economics