The tax multiplier is calculated as 1 / (1 - b)
Indicate whether the statement is true or false
FALSE
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If at the current level of product-specific service, consumers' value at $5 and the cost of retailers to provide the services is $10, which of the following is true?
A) the profit-maximizing amount of product-specific services is being offered. B) the profit-maximizing level of profit-maximizing services is less than the current level C) the profit-maximizing level of profit-maximizing services is exactly double the current level D) the profit-maximizing level of profit-maximizing services is greater than the current level
If the cost of capital decreased to 1%, does the firm invest in the new technology?
a. Yes because the NPV>0 b. Yes because the NPV=0 c. Need information on the marginal benefits and costs d. No because the NPV<0
With regard to international trade,
A. The production possibilities exceed the consumption possibilities. B. Some countries do not have a comparative advantage in producing anything. C. The market mechanism determines the terms of trade. D. Rich countries benefit at the expense of poor countries.
To facilitate the international comparisons of living standards around the world, adjustments are supposed to be made to each country's GDP. These adjustments require:
A) each country's GDP should be multiplied by its general price level B)there is no need for adjustments since, each country's GDP is the representative of its standard of living C) calculating each country's GDP in terms of U.S. dollar, dividing it by the general price level and, subtracting the previous year's value of the country's GDP from it. D) converting each country's GDP to US dollars' dividing it by the country's population and, to adjust the resulting figure for the purchasing power parity.