In 1963, government economists assumed that the MPC for the United States was approximately 0.90 . If taxes were cut by $9 billion, then consumer expenditures would initially be expected to
a. decrease by $9.0 billion.
b. increase by $9.0 billion.
c. decrease by $8.1 billion.
d. increase by $8.1 billion.
d
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Individuals A and B both produce good X. A has a comparative advantage in the production of good X if A
A) has a lower opportunity cost of producing good X than has B. B) has a lower opportunity cost of producing good X than of producing good Y. C) can produce more units of X in a given time period than can B. D) can produce X using newer technology than can B.
Assuming we are considering a normal good, the calculated price elasticity of demand is:
A) always positive. B) always negative. C) positive if demand is elastic and negative if demand is inelastic. D) positive if demand is inelastic and negative if demand is elastic.
Physical destruction of property during the Civil War (1861–1865) occurred on a wide scale in both the North and the South
Indicate whether the statement is true or false
Which is the most accurate statement?
A. Poverty can easily be wiped out by giving every adult on welfare a minimum wage job. B. The basic cause of poverty is that nearly all of the poor are lazy. C. Within a decade, poverty will no longer be a national problem. D. There is a hard core of millions of poor people who will need public assistance for many years to come.