If the marginal propensity to consume (MPC) is 0.75, what is the value of the multiplier?
A) 4.0
B) 3.0
C) 2.0
D) 1.0
A
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Many bars close to campuses have started offering cheaper beer to consumers with a student IDs. These bars are using
a. Direct price discrimination b. Indirect price discrimination c. Decreasing returns to scale d. None of the above
If the exchange rate between the U.S. dollar and Japanese yen changes from $1 = 100 yen to $1 = 90 yen, then
A. Japanese tourists visiting the United States will benefit. B. U.S. auto producers and autoworkers will lose. C. All Japanese producers and consumers will lose. D. U.S. consumers of Japanese TV sets will benefit.
When is it not necessary to build a new market supply schedule?
(A) When new technology is used to produce a good. (B) When there is a change in input costs. (C) When there is a change in the number of suppliers. (D) When there is a change in the price of a good.
During the course of a week, McDonald's has enough time to hire or layoff workers, but it does not have enough time to expand its kitchen or add an additional seating area. In this situation, McDonald's:
A. has no fixed costs. B. is in the short run. C. suffers an economic loss. D. earns a large profit.