If the MPC is 0.80, and if the goal is to increase real GDP by $200 million, then by how much would government spending have to change to generate this increase in real GDP?
a. $240 million.
b. $200 million.
c. $180 million.
d. $40 million.
d
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A situation is efficient if it is:
A. not possible to find a transaction that will make at least one person better off without harming others. B. possible to find a transaction that will make everyone better off. C. possible to find a transaction that will make at least one person better off, even if others are made worse off. D. possible to find a transaction that will make at least one person better off without harming others.
Refer to the figure above. If a per-unit tax of $3 is imposed on the sale of Good X, what is the tax revenue received by the government?
A) $20 million B) $10 million C) $12 million D) $60 million
A production subsidy combined with free trade
A) has the same deadweight costs as a tariff. B) has only consumption deadweight costs. C) has only production deadweight costs. D) None of the above.
The four-firm concentration ratio is calculated by adding the _____________ of the four largest firms in the industry.
a. profits b. total earnings c. market shares d. costs of wages