If the MPC is 0.75, the multiplier will be:
A. 2
B. 3
C. 3.5
D. 4
D. 4
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If you feel you are better off because you receive a 10 percent raise even when the price level also increases by 10 percent, then you are a victim of the
A) real purchasing power effect. B) money income effect. C) real income effect. D) money illusion.
Industrialization in advanced economies suggests that rising productivity is responsible for
(a) a drop in the number of laborers employed in the primary sector. (b) a smaller percentage of the total labor force working in the secondary sector. (c) a significant rise in the number of people working in the tertiary sector. (d) all of the above.
Which of the following statements is true?
A) If marginal costs are constant, then it is optimal to advertise until the last dollar spent on advertising generates one additional dollar of sales. B) If the demand curve shifts leftward as the advertising expenditure increases, then the advertising elasticity of demand is positive. C) If the advertising elasticity of demand declines and consumer demand becomes more price elastic, then the optimal advertising-to-sales ratio declines. D) If the advertising elasticity of demand is positive, then the demand curve must be upward sloping.
Which of the following persons is most likely to become informed on the National Endowment for the Arts?
A) an attorney B) a mayor of a city C) a farmer D) a student of agriculture E) a sculptor