Find the tax multiplier if the MPC is 0.75.
A. ?4.
B. ?3.
C. 0.33.
D. 3.
Answer: B
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In equilibrium, which of the following conditions is common to both unregulated monopoly and pure competition?
A) P = MR B) AR = ATC C) MR = MC D) MC = P
Workers’ reluctance to take nominal pay cuts offers a feasible explanation of why the Phillips Curve relation breaks down when there is deflation.
a. true b. false
Tiger Woods, a professional golfer, pays a garage mechanic to change the motor oil of his car even though he can do the work himself. Which of the following best explains why Tiger Woods does NOT change the oil himself?
A. The opportunity cost of changing oil is higher for Tiger Woods than for the garage mechanic. B. Tiger Woods has an absolute advantage in changing oil. C. There is no opportunity cost for the garage mechanic to change oil. D. Tiger Woods has a comparative advantage in changing oil.
Economic growth appears on a production possibilities curve as
A) the curve shifting out away from the origin. B) the curve shifting in toward the origin. C) a change in the slope of the curve. D) the points outside the production possibilities curve.