The table below shows a competitive firm's short-run production function. Labor is the firm's only variable input, and market price for the firm's product is $2 per unit. 
How much does the fifth unit of labor add to the firm's total revenue?
A. $60
B. $80
C. $10
D. $40
E. $160
Answer: E
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An increase in the number of buyers in a particular market for a good will result in a ___________________ for that good
A) movement up along the demand curve B) movement down along the demand curve C) leftward shift in the demand curve D) rightward shift in the demand curve
An open economy has GDP of $1,000 billion, consumption of $650 billion, government expenditures of $150 billion, and domestic investment of $40 billion. What is its demand for loanable funds?
a. $40 billion b. $120 billion c. $160 billion d. $200 billion
A $1 increase in autonomous spending has a multiplier effect greater than one on total expenditures and output because
A) each expenditure is respent in the same amount continuously. B) overtime expenditures tend to increase. C) total expenditures include autonomous expenditures. D) each time an expenditure occurs the recipient respends a proportion of the funds.
Keynesian economists tend to believe that the private sector of the economy (households and businesses) is inherently
A. very stable in its consumption and investment decisions. B. unstable in its consumption and investment decisions. C. smaller than the foreign trade sector of the economy.