One reason the oversimplified multiplier is incorrect is that inflation
a. increases the multiplier by increasing investment spending.
b. increases the multiplier by increasing consumer spending.
c. decreases the multiplier by increasing net exports.
d. decreases the multiplier by decreasing consumer spending.
d
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Educational services provided by public schools are:
A. excluded from GDP because they are intermediate goods. B. included in GDP at market prices. C. excluded from GDP because they are not sold in markets. D. included in GDP at cost.
The table above gives the cost of producing T-shirts. When 5 T-shirts are produced, the average fixed cost is ________ and the average variable cost is ________
A) $4; $10 B) $10; $6 C) $5; $3 D) $4; $6
What are the pros and cons of a competitive market in the long run?
Exhibit 8-2 Demand and cost information for a monopoly Q P TC 0 40 10 1 30 15 2 20 25 3 10 40 4 0 60 Refer to Exhibit 8-2. Using the rule that focuses on the marginal approach to maximizing profits, the monopolist maximizes profit by choosing price equal to:
A. $40. B. $20. C. $10. D. $0.