The greater the marginal propensity to consume (MPC) in the economy, the greater the spending multiplier
a. True
b. False
Indicate whether the statement is true or false
True
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Production efficiency requires that
A) the economy be producing on the PPF but the marginal cost of a good does not need to equal its marginal benefit. B) the economy be producing on the PPF and that the marginal cost of a good equals its marginal benefit. C) the marginal cost of a good equals its marginal benefit but the economy does not need to be producing on its PPF. D) the society be producing at the point of allocative efficiency. E) opportunity costs be minimized.
Which of the following statements about U.S. international trade in 2013 is CORRECT?
A) The value of U.S. exports exceeded the value of U.S. imports. B) The value of U.S. exports was about 33 percent of the value of total U.S. production. C) The United States imported only goods. D) The United States was the world's largest trader.
In an Israeli factory, each worker can produce 2/5 of a shirt in an hour or 1/10 of a pair of pants in an hour. If there are 500 workers in the factory, what is opportunity cost of producing one pair of pants?
a. 1 shirt b. 4 shirts c. 1/2 shirt d. 1/4 shirt e. 2 shirts
Use the following graph with data for a private closed economy to answer the next question.
At the $150 billion level of real GDP, aggregate expenditures are
A. more than real GDP, so real GDP will fall. B. less than real GDP, so real GDP will rise. C. more than real GDP, so real GDP will rise. D. equal to real GDP, so there will be no change in real GDP.