If the marginal propensity to save (MPS) is 0.1, the multiplier will be
A) 0.1.
B) 1.
C) 5.
D) 10.
D) 10.
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A video available on a Web site that allows free download is a ________
A) private good B) public good C) club good D) common pool resource
If the best surgeon in town is also the best at cleaning swimming pools, then according to economic reasoning, this person should
A) split his time evenly between being a surgeon and cleaning swimming pools. B) pursue the activity he enjoys more. C) specialize in being a surgeon because its opportunity cost is lower. D) specialize in cleaning swimming pools because it is more labor-intensive.
Inflation burdens those individuals living on fixed incomes
Indicate whether the statement is true or false
Suppose an industry consists of 20 firms. Each firm's share of total sales in the industry is 5 percent. If two of the firms merge, then the four-firm concentration ratio in the industry will
A) remain unchanged. B) decrease as there are fewer firms in the industry. C) increase. D) depend on the market condition faced by the industry.