Suppose there was a debate regarding how to spend $1 billion in newly found revenues in the budget. Suppose the most liberal Democrat suggests an increase to Food Stamp (SNAP) allotments. Suppose the most conservative Republican suggests an increase in defense spending. The Democrat says that, on average, Food Stamp spending does the most good, so more is better. The Republican is arguing that the extra security purchased by the extra spending will increase well-being the most. What is going on here?
A. Only the Democrat is using marginal analysis.
B. Neither are using marginal analysis.
C. Only the Republican is using marginal analysis.
D. Both are employing marginal analysis, just from different perspectives.
Answer: C
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If Microsoft stock has a constant net return each year, then the value of a share of Microsoft stock is determined by
a. subtracting Microsoft's total costs from its total revenue. b. multiplying the annual net income by the number of shares. c. dividing the annual net income from the asset by the interest rate. d. both a and b above.
Experimental evidence indicates women choose less competitive environments than men
a. True b. False Indicate whether the statement is true or false
Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. For a worker in Country A, the trade-off of making one tomato is:
A. 4 bananas. B. 2 bananas. C. 3 bananas. D. 5 bananas.
In 1964 and 1970, unemployment was about 5 percent. Inflation in 1964, however, was 2 percent, while in 1970 it was over 5 percent. What might explain this difference?
A. Expansionary monetary policy B. An increase in expected inflation C. Expansionary fiscal policy D. An increase in labor productivity