If MPC = 0.75, a $40 billion decrease in government purchases would have what size effect on the "first round" of induced added consumption?
a. It would increase first round consumption by $30 billion
b. It would increase first round consumption by $40 billion.
c. It would increase first round consumption by $120 billion.
d. None of the above; the first round effect would be a decrease in consumption.
d
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Explain what is meant by the "weighted cost of capital" and how it is used in capital budgeting
What will be an ideal response?
Laser disc players have been around for 10 years, but in the last several years, the sales have skyrocketed
Manufacturers attribute the increase in sales to lower prices, increased availability of movies on laser disk, and the appearance of laser disks for rent in video cassette rental stores. Describe this market using the concept of network externalities.
Which of the following is a characteristic of a pure command economy?
a. all resources are privately owned b. economic activity is coordinated by the price system c. competitive markets guide resources to their highest-valued uses d. centralized economic planning is used to answer the basic economic questions e. economic choices are voluntary and are based on rational self-interest
The process of steady increase in the quantity and quality of goods and services the economy can produce is called:
A. aggregation. B. production. C. globalization. D. economic growth.