An increase in government spending by $100 would, if the MPC = 0.90, result in an increase in real GDP by:
A. $1,000.
B. $9,000.
C. $900.
D. $190.
Answer: A
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Refer to Table 2-16. What is Finland's opportunity cost of producing one cell phone?
A) 0.25 board feet of lumber B) 4 board feet of lumber C) 12 board feet of lumber D) 16 board feet of lumber
Decrease in the real interest rate will ________ the expenditure curve:
A) decrease. B) increase. C) not change. D) none of the above.
Explain why the supply-and-demand model should not be used to analyze the market for jeans
What will be an ideal response?
If the MRP of the 13th worker hired is $40 and the MLC of that worker is $34, the firm
a. lost money by hiring that worker b. cannot hire that worker unless more capital is added to production, in which case the firm will profit if the cost of the worker and capital is less than the revenue theworker generates c. profited only if price of the good increased d. must have lost money on the 12 workers it hired prior to hiring this 13th worker e. profited by hiring that worker