If the marginal propensity to consume (MPC) is 0.75, and if the goal is to increase real GDP by $400 million, then by how much would government spending have to change to generate this increase in real GDP?
A. $140 million.
B. $100 million.
C. $200 million.
D. $400 million.
Answer: B
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Entrepreneurs play a key role in which type of economy?
A) command economy B) centrally planned economy C) market economy D) all of the above
Refer to Figure 13.1. If the voting method used to select a location for the recreation center is the plurality-rule method, the recreation center will be built in
A) Desert Sands. B) Glacier Cove. C) Mountain View. D) Oceanside.
Policies such as rent control and trade barriers persist in spite of the fact that economists are virtually united in their opposition to such policies, probably because
a. economists have not yet convinced the general public that the policies are undesirable. b. economists engage in positive analysis, not normative analysis. c. economists have values that are different from the values of most non-economists. d. economists' theories are not easily confirmed or refuted in laboratory analysis.
If the average variable cost of the fifth hat is $30, then the total variable cost of five hats is
A) $6. B) $150. C) $1800. D) indeterminate from this information.