If the MPC = 1.0, then MPS must be _____ and the income multiplier is
a. 0; infinite
b. 0; 0
c. 10; 10
d. 100; 0
e. 1; 10
A
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Which of the following is NOT conducive to the successful operation of a cartel?
A) Market demand for the good is relatively inelastic. B) The cartel supplies all of the world's output of the good. C) Cartel members have substantial cost advantages over non-member producers. D) The supply of non-cartel members is very price elastic.
Which of the following is most consistent with economizing behavior?
a. If you derive the same satisfaction from eating pizza and eating ice cream, it makes no difference which one of the two you choose. b. Before voting, you should invest the time and energy to become fully informed on all of the issues and candidates. c. It never makes sense to hire someone to do something for you that you could do yourself. d. If you get the same satisfaction from a chicken sandwich and a salad, you should purchase the one that costs the least.
Suppose a German bank purchases a U.S. Treasury bond. This transaction would be recorded in the:
a. unilateral transfers. b. current account. c. capital account. d. goods trade balance.
Which of the following is not demonstrated by a production possibility curve?
A. scarcity B. opportunity cost C. necessity for choice due to scarcity D. price