Assuming MPC is 0.90, what effect, if any, would an increase of $100 billion of U.S. exports have on the U.S. level of national income?
a. No effect since the goods would be consumed abroad
b. National income increases by $100 billion
c. National income decreases by $100 billion
d. National income increases by $1,000 billion
e. National income decreases by $1,000 billion
D
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When a textile company keeps track of its inventory using a computer and its competitor uses a pad of paper and a pencil, they are both answering the ________ part of one of the two big economic questions
A) "what" B) "how" C) "for whom" D) "where"
All else constant, a decrease in the per unit price of labor would create an incentive for a firm manager to substitute labor for capital in the firm's production process
Indicate whether the statement is true or false
"Financial distress" is more easily handled in a __________-oriented financial system, in which ownership of the firm tends to be spread among __________ shareholders than in the other type of system
A) markets; more B) markets; fewer C) banking; more D) banking; fewer
In 1950 there were 16 individuals contributing to Social Security for every one person collecting benefits
a. True b. False