Refer to the information. The multiplier for this economy is:
A. 2.
B. 2.5.
C. 3.
D. 4.
B. 2.5.
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Answer the following statement(s) true (T) or false (F)
1.Whether or not people have identical tastes, the marginal entrant is indifferent about using a common property. 2. Whether or not people have identical tastes, a commonly owned property creates no social value. 3. Whether or not people have identical tastes, free entry to a common property leads to a suboptimal outcome. 4. The problem with splitting checks is that no one orders as much as they truly want to eat in order to keep the total bill low. 5. A market failure occurs when the government steps in and failingly attempts to alleviate the tragedy of the commons.
You enter a store and buy a bottle of soda. Do you usually receive consumer surplus?
A) Yes, because you wouldn't buy the soda if your willingness to pay would be less than the price. B) Yes, because you are thirsty. C) No, because you value other drinks more. D) No, because you have less money after the transaction.
Economic profits are
A) total revenue minus explicit costs. B) total revenue minus implicit costs. C) total revenue minus explicit and implicit costs. D) total revenue minus accounting costs.
The Keynesian region of the aggregate supply curve represents an economy with:
a. high unemployment and low inflation. b. low unemployment and low inflation. c. low unemployment and high inflation. d. high unemployment and high inflation. e. excess capacity but no unemployment or inflation.