Efficiency in output requires which of the following?
a. MC = MRP.
b. MC = MFC.
c. MC = MU.
d. MC = AVC.
c
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Opportunity cost cannot be measured in money terms, only in conceptual terms
a. True b. False Indicate whether the statement is true or false
Average total cost will increase if __________
Fill in the blank(s) with correct word
A tax cut targeted at ____ people may have a bigger effect because a. poorer; poorer people tend to spend a higher share of their income
b. poorer; poorer people tend to spend a lower share of their income. c. wealthier; wealthier people tend to spend a higher share of their income. d. wealthier; wealthier people tend to spend a lower share of their income.
Hypothetical economy: C=$600 billion, I=$300 billion, G=$150 bill Assume for the long run: 1. For every 1% increase (decrease) in interest rate, planned investment decreases (increases) by $5 billion. 2. For every $10 billion increase (decrease) in government spending, interest rate increases (decreases) by 1%. 3. The MPC = 0.8 When government spending increases by $30 billion, the crowding-out effect can be represented by a
A) $30 billion decrease in investment. B) $15 billion decrease in investment. C) 3% decrease in the interest rate. D) 1% increase in the interest rate.