The multiplier effect occurs because
A. as saving levels increase, a greater pool of loanable funds is available for investment spending by businesses.
B. increases in income cause a chain reaction of spending by many businesses and individuals.
C. increases in income cause tax revenues to increase, thereby stimulating increases in government spending levels.
D. businesses copy the spending decisions of their competitors.
E. households tend to spend any increase in income.
B. increases in income cause a chain reaction of spending by many businesses and individuals.
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All economic questions arise because we
A) want more than we can get. B) want more than we need. C) have an abundance of resources. D) have limited wants that need to be satisfied.
The monetary value of all final goods and services produced by the United States economy during a year is:
a. DI b. GDP c. NDP d. NI
Which of the following will cause a movement upward along a supply curve?
A. Increases in raw-material costs. B. Increases in labor costs. C. Increases in the cost of machinery. D. Increases in the market price of a good, other things being equal.
Suppose that one worker can produce 15 cookies, two workers can produce 35 cookies together, and three workers can produce 50 cookies together. What is the marginal product of the 3rd worker?
A) 20 cookies B) 15 cookies C) 50 cookies D) 35 cookies