The multiplier principle is important because it
a. was central to economic theory before Keynes.
b. implies that investment will help stabilize the economy.
c. shows why small shifts in investment have a powerful influence on national income.
d. illustrates why a small change in income causes a large change in saving.
C
Economics
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In the figure above, if the market is unregulated, then at the equilibrium output level, the marginal social cost of production
A) is less than the marginal benefit to consumers. B) exceeds the marginal benefit to consumers. C) equals the marginal benefit to consumers. D) equals the marginal private cost of production.
Economics
Refer to Scenario 5.3. Based on the 10 years' past performance, what is the probability of a good year for Zowiebo?
A) 30/31 B) 1/31 C) 0.9 D) 0.1
Economics