Which of the following will not lead to increase in the marginal revenue product?
A. MPP increases without any changes in the price.
B. Price of the product increases without any changes in MPP.
C. MPP and price of the product increase.
D. MPP remains the same and price of the product falls.
Answer: D
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If a country's imports are very important in determining the volume of exports from its trading partners, then:
a. the simple spending multiplier understates the true value of the multiplier. b. the spending multiplier will be equal to 1/marginal propensity to import. c. the simple spending multiplier is an accurate measure of the multiplier effect. d. the simple spending multiplier will be equal to 1/MPC e. the spending multiplier will be equal to 1/marginal propensity to save.
Medicaid is an example of a cash assistance poverty program
Indicate whether the statement is true or false
A worker can always build a chair in four hours. If a chair sells for $40 in a perfectly competitive market, then the equilibrium wage per hour in a perfectly competitive labor market is
a. $4. b. $10. c. $40. d. $160.
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease