If a tax cut of $12 billion causes real GDP to increase by $36 billion, then the tax multiplier is
A. 2.
B. 3.
C. 4.
D. 5.
Answer: B
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In the table above, Y is measured along the y-axis and X along the x-axis. The slope between points e and f is
A) -25. B) 4. C) 0.25. D) -0.25.
A notion that supports the idea that some items should be distributed equally to all is known as
A. Pareto efficiency. B. the Hoover Principle. C. poverty gap closing. D. commodity egalitarianism.
Every Friday night Elizabeth either goes bowling or goes to the movies. Because the price of bowling went up, Elizabeth now sees more movies. Elizabeth's behavior would be best described as a change in which determinant of demand?
a. Price of complementary goods b. Expectations c. Income d. Number of buyers e. Price of substitute goods
If a firm's total fixed costs are $30, the firm's marginal cost of producing the first unit of output is $30, and the average total cost of producing two units of output is $42, the marginal cost of the second unit of output is:
A. $84. B. $54. C. $42. D. $24.