If the spending multiplier is 3 and the desired amount of increase in real GDP is $90 million, then by how much would government spending have to increase??
A. ?$270 million.
B. ?$90 million.
C. ?$30 million.
D. ?$0.
Answer: C
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A monopsony pays a wage rate that is
A) greater than value of marginal product. B) equal to the marginal cost of labor. C) less than value of marginal product. D) unacceptable to the workers hired.
Refer to Table 2-4. Assume Dina's Diner only produces sliders and hot wings. A combination of 40 sliders and 25 hot wings would appear
A) along Dina's production possibilities frontier. B) inside Dina's production possibilities frontier. C) outside Dina's production possibilities frontier. D) at the vertical intercept of Dina's production possibilities frontier.
Which of the following does not increase a McDonald's franchisee's financial stake in the success of the operation?
a. Successful owners may get additional restaurants b. The franchise is valid for 20 years and renewable after that c. The franchisee can safely ignore the company's standards of quality, pricing, cleanliness, hours of operation, and so on d. The franchisee must make highly specific investments of money and time e. The franchisee must have "non-borrowed personal resources" of at least $200,000 in cash
Which of the following is NOT a key assumption of the classical model?
A. People are motivated by self-interest. B. Wages and prices are flexible. C. People cannot be fooled by money illusion. D. There is a single monopoly seller in many markets for goods and services.