If the marginal propensity to consumer is 0.8, the spending multiplier must be:
A. 5
B. 2
C. 1.2
D. 1.8
A. 5
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Economists report changes in unemployment in:
A. percentage points, not percentages. B. percentages, not percentage points. C. percentage points or percentages, interchangeably. D. nominal figures; they rarely use percentages or percentage point changes.
What is the final outcome if each firm follows its dominant strategy?
a. Each firm makes a profit of $12,000.
b. Each firm makes a profit of $9,000.
c. Each firm makes a profit of $8,800.
d. Each firm makes a profit of $5,400.
Why is the marginal product of labor for Moe’s higher with two employees than it is with more workers?
a. Adding a second worker yields the biggest efficiency gain.
b. It is less expensive to pay only two workers than for three or more workers.
c. Variable costs are higher with fewer workers.
d. The second worker is the best employee.
Refer to the information provided in Figure 12.4 below to answer the question(s) that follow.
Figure 12.4There are two sectors in the economy, X and Y, and both are in long-run, zero-profit equilibrium at the intersections of S0 and D0.Refer to Figure 12.4. Assume consumer preference changes toward X and away from Y. Ceteris paribus, a new general equilibrium will eventually be reached in sector Y with a price of ________ and a quantity of ________.
A. P0; < Q1 B. P1; Q0 C. P1; Q1 D. P0; Q0