In the Keynesian model, a $1 billion increase in autonomous consumption leads to ________ in equilibrium output.
A. no change
B. a greater than $1 billion increase
C. a $1 billion decrease
D. a $1 billion increase
Answer: B
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The circular flow of income assumes that
A) the national income accounting approach is not an adequate way to measure the economy's performance. B) profit is not a cost of production. C) goods and services flow in one direction and money payments flow in the other. D) total income is the sum of the value of intermediate goods and final goods and services.
The fraction of deposits that banks are required to keep is known as the
A) discount rate. B) required reserve ratio. C) deposit multiplier. D) money multiplier.
(Use the graph of the wheat market in Economic Insight 9.1, on p. 162 of the text.) S1 shows the supply curve for wheat in the local market. S2 shows the supply curve for wheat in more distant markets in the early 1800s. S3 shows the supply curve for wheat in more distant markets in the mid-1800s. Given the information provided, we can conclude that
a. the price that wheat producers received per bushel rose from P2F to P2C during the antebellum period. b. the price paid by wheat buyers in distant markets fell from P2C per bushel to P3C per bushel during the antebellum period. c. in the mid-1800s, wheat buyers in distant markets paid P3F per bushel and wheat producers received P3C per bushel. d. wheat producers received a price of P3C for wheat in the early 1800s.
For the two industries with market shares listed below, which of the following would be true? Table 14-1 ? Firm 1 Firm 2 Firm 3 Firm 4 Firm 5 Firm 6 Industry A 50% 10% 10% 10% 10% 10% Industry B 20% 20% 20% 20% 10% 10%
A. The concentration ratio would be the same for both industries but the HHI would be higher for Industry A. B. The concentration ratio would be the same for both industries but the HHI would be higher for Industry B. C. The HHI would be the same for both industries but the concentration ratio would be higher for Industry B. D. Both the concentration ratio and the HHI would be the same for both industries.