The multiplier principle is built on the premise that one person’s spending is another person’s
A. debt.
B. obligation.
C. income.
D. saving.
Answer: C
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Refer to Figure 3-4. At a price of $20, how many units will be supplied?
A) 400 B) 500 C) 600 D) 800
The Coase theorem implies that the initial allocation of property rights:
A. determines all aspects of the final outcome of the negotiated agreement. B. does not determine which person will be entitled to engage in the externality generating activity, but does determine which person will receive compensation. C. must be assigned to the person with the greatest costs. D. determines which person will be entitled to engage in the externality generating activity, but does not affect which person will receive compensation.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases. B. increases. C. remains constant. D. decreases.
Recall the Application. If the organization in New Zealand was successful in getting the Olympics to include sheep shearing as a spectator sport, and this helped to raise the world price of wool, the quantity of wool supplied would ________ because
the market supply curve for wool is ________ sloped. A) decrease; negatively B) increase; negatively C) increase; positively D) decrease; positively