1. Given the data in Exhibit S-1 on Macroland's economy, what is the level of saving in
2. Given the data in Exhibit S-1 on Macroland's economy, what is the MPC in 200?
1. Recessions in South Korea and Indonesia will cause
a. an upward movement along the United States's AD curve
b. a downward movement along the United States's AD curve
c. the United States's AS curve to shift to the right
d. the United States's AD curve
1. Government purchases are part of and include .
a. national income; federal and state government purchases
b. GDP; federal, state, and local government purchases
c. GDP; federal government purchases only
d. national income; federal government purchases
1. The determinants of investment include the
a. level of technology, the interest rate, expectations of future economic
growth, and the level of income
b. level of technology, the interest rate, expectations of future economic
growth, and the capacity ut
1. The slope of the consumption function reflects the
a. average propensity to consume
b. the ratio of income to consumption
c. marginal propensity to consume
d. level of autonomous consumption
e. level of income
2. The relationship between consumption an
Given the following table, what is the average product of the three workers?
Which of the following is most likely to be a fixed cost?
Expenditures for raw materials.
Wages for unskilled labor.
If Korea is capable of producing either shoes or soccer balls or some combination of
those two products, then
Korea should specialize in the product in which it has an absolute advantage.
It would be impossible for Korea to have an absolute advantage over
If the equilibrium price of lettuce is 80 cents per head and the government imposes a
price floor of 70 cents per head, the price of lettuce will:
Decrease to 70 cents.
Remain at 80 cents.
Decrease to 75 cents.
Cause a shortage of lettuce.
In the early 19
1. If speculation is that a recession is around the corner, which means that our future
incomes will most likely fall, then the effect of all this on the economy now will be
a. an upward movement along the AD curve
b. a downward movement along the AD curv
These figures illustrate the production possibilities available to Barney and Betty with
8 hours of labor in their bakery.
Refer to Figure 1.1 The opportunity cost of 1 loaf of bread for Barney is
Refer to Figure 1.1.