Given full-employment output = $2,800, equilibrium real GDP = $2,500, and MPS = 0.25, which of the following changes would most likely bring the economy to a full-employment level of real GDP?
a. $300 decrease in taxes.
b. $75 increase in government spending.
c. $75 decrease in taxes.
d. $300 increase in government spending.
e. $75 decrease in government spending.
b
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In the United States, the fact that the gap between the rich and the poor has been increasing is often justified by economists on the grounds that greater
a. efficiency can never be achieved without greater inequality. b. inequality does not create any problems. c. inequality is a desirable end in itself. d. inequality is an undesirable consequence of greater efficiency. e. efficiency should be achieved at any cost.
Total utility
a. diminishes as the quantity consumed of a good increases. b. increases as long as more goods are acquired. c. increases as long as marginal utility increases. d. increases as long as marginal utility is positive. e. diminishes as consumption of some good rises.
Which of the following statements about the gender gap in income is correct?
A. The typical woman in the U.S. earns about 75% as much as the typical man. B. In higher education, women are under-represented in more lucrative majors such as physics and chemistry. C. Gender discrimination against women resulted in an excess supply of female workers in female-dominated occupations. D. All of these
A perfectly competitive firm is hiring variable resources M and N. It will minimize total costs
A) MRPm/MFCm = MRPn/MFCn. B) MRPm ? MFCm = MRPn ? MFCn. C) Pm/MPPm = Pn/MPPn. D) MPPm/Pm = MPPn/Pn.