A marginal propensity to save of 0.20 results in a multiplier of
A) 2.
B) 5.
C) 1.25.
D) 8.
E) 1.
B
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Excess demand in an unregulated market will cause the price of a product to fall
Indicate whether the statement is true or false
The lawsuit the Justice Department brought against Apple regarding the pricing of e-books for its iPad is an example of attempts by the government
A) to prevent horizontal mergers which would significantly reduce competition. B) to prevent vertical mergers which would significantly reduce competition. C) to regulate a natural monopoly by establishing government-regulated prices. D) to keep firms from artificially restricting competition to raise prices.
A natural monopoly exists when
a. economies of scale are negligible b. there are a few dominant firms that corner the market c. one firm can produce the market output at lower average cost than two or more firms can d. barriers to entry are low e. only a few firms can minimize cost and maximize profit
Which of the following measures productivity?
A. GDP per worker. B. Percentage increase in GDP. C. GDP per capita. D. The ratio of current GDP to GDP in the base period.