If demand and supply both decrease
A) the equilibrium quantity definitely will decrease, and the market clearing price definitely will decrease.
B) the equilibrium quantity definitely will decrease, and the market clearing price definitely will increase.
C) the market clearing price definitely will decrease, but the change in the equilibrium quantity cannot be determined without more information.
D) the equilibrium quantity definitely will decrease, but the change in market clearing price cannot be determined without more information.
Answer: D
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Assume that the MPC is 0.80 and investment rises by $50 million. How much additional saving will this generate in the second round of spending?
a. $10 million b. $40 million c. $50 million d. $62.5 million e. $250 million
When the government conducts activist fiscal policy, what type of spending does it usually use?
A. entitlement and mandatory spending B. net interest spending C. discretionary spending D. strategic spending
When Adam Smith's ten pin workers specialized, they were able to increase output of pins in a day from 200 to 48,000. One reason for the increase in pin output was due to
A) the time saved when workers do not need to shift from one task to another. B) the boredom the workers suffered when they stopped making a whole pin and only concentrated on one task such as painting the heads white. C) new machinery. D) the bonus they received when they produced more pins.
Refer to the below data. If columns 1 and 3 are this firm's demand schedule, maximum economic profit will be:
Answer the question on the basis of the following demand and cost data for a specific firm.
A. $60
B. $70
C. $80
D. $90