If the marginal propensity to consume is 0.80, the value of the spending multiplier will be 5
a. True
b. False
Indicate whether the statement is true or false
True
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In order for a central planner to achieve the invisible-hand type efficiency of a free market, the planner would
a. need masses of statistics. b. be required to makes enormous calculations. c. need to be able to measure a consumer's marginal utility in order to equate MU with MC. d. All of the above would be required.
Other things constant, countries that invest more will grow
What will be an ideal response?
Regulation that is based on allowing prices to reflect only the actual operating cost of production is known as
A) average cost regulation. B) marginal cost regulation. C) rate-of-return regulation. D) cost-of-service regulation.
Refer to the information provided in Figure 15.1 below to answer the question(s) that follow. Below are cost curves for Dom's Barber Shop, a monopolistically competitive firm. 
Figure 15.1 Refer to Figure 15.1. If Dom's maximizes profits, its ________ is $240.
A. profit B. marginal revenue C. total revenue D. total cost