The marginal propensity to import is larger in Mexico than in the United States. As a result,
A) there is less autonomous investment in Mexico.
B) the expenditure multiplier is larger in Mexico.
C) the expenditure multiplier is larger in the United States.
D) induced expenditure is larger in Mexico.
E) there is more autonomous expenditure in Mexico.
C
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Answer the following statement(s) true (T) or false (F)
1. A negligence standard, with the allowance of contributory negligence, always leads to a socially optimal outcome. 2. Strict liability is the liability that exists when it can be proven beyond a reasonable doubt that the defendant was negligent. 3. Negligence is irrelevant when a strict liability standard is applied. 4. The principle of general average gives a ship's captain an incentive to consider the value of cargo when jettisoning it to prevent a disaster. 5. The doctrine of Respondent Superior contends that an employer is sheltered from torts committed against his employees.
Natural monopolies are usually found in industries with
a. low fixed costs. b. large economies of scale. c. a normal profit. d. constant economies of scale.
Profit can be maximized only where marginal revenue equals
A. average cost. B. total cost. C. marginal cost. D. average cost.
Investors must rely on stockbrokers to give detailed, day-to-day reports on stocks and bonds.
Answer the following statement true (T) or false (F)