Equilibrium GDP
Provide solution of this question. If the MPC is .70 and gross investment increases by $3 billion, the equilibrium GDP will: A) increase by $10 billion. B) increase by $2.10 billion. C) decrease by $4.29 billion. D) increase by $4.29 billion.
When all bonds are perpetuities which annually pay $100, at an interest rate of 2%, in that case the price of these bonds would be: (1) $9800. (2) $5000. (3) $980. (4) $800. (5) $1,020. How can I s
Evidence that may potentially be cited as conflicting with the law of diminishing marginal utility would comprise: (i) Della’s enthusiasm for all-you-can-eat buffet diminishes subsequent to her fifth plate of lasagna. (ii) Jethro trades in his 1981 Gremlin on th
Difference between voluntary and involuntry employment: Voluntary unemployment is that portion of working force not willing to engage itself is a gainful occupation. An Involuntary unemployment is that portion of labour force that is willing and capab
Your construction company just bought a bulldozer on credit. From the viewpoint of your company, this bulldozer is an illustration of: (i) Liability. (ii) Fixed costs. (iii) Net variable cost. (iv) Capitalization. (v) Economic capital. Q : Consequences of the price floor Consequences of the price floor: The consequences of price floor might be: (A) Surplus of the commodity (B) The government might resort to buffer stocks to absorb the excess in the market at the support price and sells the products to consumers beneat
Consequences of the price floor: The consequences of price floor might be: (A) Surplus of the commodity (B) The government might resort to buffer stocks to absorb the excess in the market at the support price and sells the products to consumers beneat
The only profit earned within the long run through a purely competitive firm is of: (w) normal accounting profit. (x) offset by short term losses. (y) created by exceptionally astute managers. (z) unrelated to its opportunity costs. Q : Purchasing power of Income Effects Whenever the price increases for a good that you enjoy extremely and purchase regularly: (i) The purchasing power of your income is reduced. (2) You adjust more rapidly than when the good was insignificant to you. (3) Your substitution effect is over-powered by an inc
Whenever the price increases for a good that you enjoy extremely and purchase regularly: (i) The purchasing power of your income is reduced. (2) You adjust more rapidly than when the good was insignificant to you. (3) Your substitution effect is over-powered by an inc
An unregulated monopoly which does not price discriminate maximizes profit at the output level which maximizes: (w) P minus marginal costs [MC]. (x) total revenue minus total cost. (y) marginal revenue [MR] minus marginal costs [MC]. (z) price minus a
Cameron is performing a research project on whale migration at Pacific Ocean. To assist with this research she hires a Ph.D. from the MIT to make computer software to organize data, paying the software genius $150,000 for his services. The Ph.D. assures Cameron that t
An increase in the income of consumer X leads to a fall/down in the demand for that good by the consumer. What is good X termed? Answer: Normal good
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