Figure 8-4
In Figure 8-4 at output level 2,
A. MR > MC.
B. the slope of the total profit curve is negative.
C. there are negative profits.
D. marginal revenue is rising compared to output.
Answer: A
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If tariffs are effective, they tend to:
a. Increase consumption. b. Decrease government spending. c. Increase net exports. d. Have their major effect on a nation's automatic stabilizers. e. Decrease net exports.
If the marginal propensity to save is 0.2 in an economy, a $20 billion rise in investment spending will increase:
A. GDP by $120 billion. B. GDP by $20 billion. C. saving by $25 billion. D. consumption by $80 billion.
When an American buys stock in a French company, from the perspective of the United States, this is a(n):
A. export. B. capital inflow. C. import. D. capital outflow.
A particularly strong expansion is called a(n):
A. bonanza. B. boom. C. output excess. D. growth recession.