The amount by which a change in government purchases of goods and services is multiplied to determine the change in aggregate demand that it generates is the ...
What will be an ideal response?
government purchases multiplier
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If the ratio of the dollar price of a U.S. toy to the dollar price of a Chinese toy is less than one:
A) retailers in the U.S. should buy the toys from both Chinese suppliers and American suppliers. B) retailers in the U.S. should not buy the toys from both Chinese suppliers and American suppliers. C) retailers in the U.S. should buy the toys from Chinese suppliers. D) retailers in the U.S. should buy the toys from American suppliers.
A college student is thinking about running an ice-cream truck over the summer. What would economists say is the student's main objective?
A. To spend as little on inputs as possible B. To maximize hourly earnings C. To sell as many ice cream cones as possible D. To maximize his profit
Taxes on gasoline and tax rebates for purchasing energy-efficient appliances are alike in that they both
A. have the effect of raising energy prices. B. are command-and-control approaches. C. rely on shifting the demand curve for energy to the left. D. are market-based approaches implemented by the government.
In which of the following market models do demand and marginal revenue diverge?
A. Pure monopoly, oligopoly, and monopolistic competition. B. Pure monopoly, oligopoly, and pure competition. C. Pure monopoly only. D. Oligopoly only.