If MPC = 0.80, how much should government spending change to increase real GDP by $500?
A. ?100.
B. +80.
C. ?80.
D. +100.
Answer: D
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All of the following are characteristics of an oligopolistic market EXCEPT
A) firms must consider the actions of their rivals. B) cartels eventually form to keep prices high. C) firms have the ability to influence prices. D) firms earn lower profits than a monopoly.
How is utility defined?
A. ease of use B. government provided goods like electricity C. the satisfaction experienced from consuming a good D. the change in benefit from producing one additional unit of a good
If Rachel bought too many hot dogs, her marginal utility would become negative and her total utility would
A. rise more slowly. B. stop rising. C. begin to fall. D. become negative.
John Maynard Keynes created the aggregate expenditures model based primarily on what historical event?
A. Bank panic of 1907. B. Great Depression. C. Spectacular economic growth during World War II. D. Economic expansion of the 1920s.