If the consumption function is C = 750 + .75Y and there are no income taxes, then the expenditure multiplier is
a) .75
b) .25
c) 4.0
d) 3.0
e) 1,000
c) 4.0
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The property of transitivity explains why indifference curves
A. cannot cross. B. bow-outward. C. are concave. D. slope upward.
The phrase "sticky prices" refers to the prices of:
A. some inputs taking longer to adjust to the price level than the output it creates. B. some output taking longer to adjust to the price level than the inputs used to create it. C. more durable goods "sticking," and not adjusting to the price level. D. consumer goods not adjusting to the price level.
Use the table below to answer the next question for a perfectly competitive firm. OutputTotal RevenueTotal Cost0$0$501407428094312011741601425200172The market price of the product in the short run is
A. $40. B. $160. C. $80. D. $120.
Homer earns $10,000 per year. Each year he spends $5,000 and saves $5,000. He pays a 5 percent sales tax on all of his spending. Assuming the sales tax is the only tax he pays, his average tax rate out of his income is
A. 3.5 percent. B. 2.5 percent. C. 0 percent. D. 5.0 percent.