If the multiplier is 4, the marginal propensity to consume (MPC) must be
A) 0.5. B) 0.25. C) 0.75. D) 1.
C
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Currently, when a consumer purchases a "green" automobile, the U.S. government gives the consumer a rebate. When the rebate program expires, we would expect
A) producer surplus to increase. B) consumer surplus to drop. C) consumer surplus to remain unchanged, since they pay the price and only get the rebate later. D) producers to stop making "green" automobiles.
A coordination game
A) is a game with multiple Nash equilibria where players can credibly coordinate to select one of the equilibria. B) is a game where players coordinate to maximize joint profits. C) cannot be solved with cheap talk. D) always has one Nash equilibrium and no dominated strategies.
Tobacco prices fell dramatically in the early 1600s in spite of demand increases because:
a. supply was also increasing. b. supply was decreasing. c. new farming machinery was introduced. d. the colonial government provided agriculture subsidies for tobacco farmers.
Centralizing responsibility for a firm's investments in a single person resolves problems of continuity
Indicate whether the statement is true or false