The magnitude of the government expenditure multiplier is ________ the magnitude of the tax multiplier
A) not comparable to
B) greater than
C) less than
D) equal to
E) greater than for expansionary policy and less than for contractionary policy
B
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Refer to Figure 2-8. If Vidalia chooses to produce 40 dozen orchids, how many roses can it produce to maximize production?
A) 30 dozen roses B) 50 dozen roses C) 100 dozen roses D) 150 dozen roses
The opportunity to exploit economies of scale is one of the gains to be derived by removing tariffs and other trade distortions. These gains will be the result of a decrease in
A) world prices of imports. B) the consumption distortion loss triangle. C) the production distortion loss triangle. D) international labor mobility. E) excessive entry and inefficient business practices.
For infinitely repeated games in which the players follow a tit-for-tat strategy, which one of the following outcomes is NOT possible?
A) The players cooperate with one another until someone decides to not cooperate, and then the other players will not cooperate for some period of time. B) There can be dominant strategies. C) If the information about another player's action is limited, then some cooperative actions may be incorrectly interpretted as "not cooperate." D) All of the above are possible outcomes.
Labor productivity is commonly measured as
A) the number of workers divided by real GDP. B) the change in real GDP divided by change in number of workers. C) nominal GDP divided by number of workers. D) real GDP divided by number of workers.