Refer to the information provided in Figure 24.1 below to answer the question(s) that follow.
Figure 24.1Refer to Figure 24.1. Suppose that the consumption function is C = 300 + 0.5Yd and taxes are $300 billion, at equilibrium the value of autonomous consumption is
A. $400 billion.
B. $300 billion.
C. $200 billion.
D. $100 billion.
Answer: B
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Which of the following statements has usually held TRUE about the relationship between the trade deficits and government budget deficits?
A) There is a negative relationship between trade deficits and budget deficits. B) There is a positive relationship between trade deficits and budget deficits. C) There is no relationship between trade deficits and budget deficits. D) A relationship exists only when there is a balanced budget.
A market is a natural monopoly when:
A. a good is produced most economically by several firms. B. a good is produced most economically by one firm. C. the government grants a firm a patent on a good. D. the firm's average cost function is everywhere upward sloping.
If a box of Swiss chocolate priced at 100 francs can be purchased for $50, the exchange rate is:
a. 0.50 francs per dollar. b. 4.00 francs per dollar. c. 0.50 dollars per franc. d. none of these.
Income elasticity of demand reflects
A. the responsiveness of demand to changes in income. B. the responsiveness of income of producers to a change in quantity sold of the good. C. the responsiveness of the quantity demanded to changes in income, adjusting its relative price so real income does not change. D. the change in total quantity demanded divided by the total change in income.