If the MPC is 0.8 and the tax rate is 20%, the expenditure multiplier will equal
A) 1.19.
B) 2.78
C) 4.0.
D) 6.0.
B
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Constant returns to scale occur when: a. long-run average total cost decreases with an increase in output
b. long-run average total cost increases with an increase in output. c. long-run average total cost remains constant with an increase in output. d. long-run average variable cost decreases with an increase in output.
A firm maximizes profits by charging a lower price to foreign buyers if
A. it has a greater monopoly power in the foreign market than it has in its home market. B. the buyers in the home country have access to cheaper imports from the rest of the world. C. the foreign demand for its good is more elastic than the domestic demand. D. the size of the foreign market is much larger than the home market.
When a nation's net exports are equal to zero, it has a
A. deficit in trade. B. surplus in trade. C. balanced trade. D. shortage in trade.
Over the last 100 years, the average U.S. growth rate in real GDP per person was about
A) 2 percent per year. B) 6 percent per year. C) 12.5 percent per year. D) 1 percent per year.