An economy's resources:
a. are limited in quantity.
b. are always efficiently utilized.
c. consist of land, labor, capital, and money.
d. are unrelated to its standard of living.
e. are unlimited when we use the latest technology.
a
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The marginal productivity principle implies that
a. quantity demanded of an input normally declines as the input price falls. b. at equilibrium, profit from the last unit of input will be zero. c. for maximizing profit, marginal revenue product should be greater than price. d. marginal productivity of inputs increase when price of inputs increase.
Which statement about the multiplier is correct?
A. If a $20 billion increase in spending creates $20 billion of new income in the first round of the multiplier process and $15 billion in the second round, the multiplier in the economy is 5 B. If a $40 billion increase in spending creates $40 billion of new income in the first round of the multiplier process and $20 billion in the second round, the multiplier in the economy is 4 C. If a $60 billion increase in spending creates $60 billion of new income in the first round of the multiplier process and $50 billion in the second round, the multiplier in the economy is 5 D. If an $80 billion increase in spending creates $80 billion of new income in the first round of the multiplier process and $60 billion in the second round, the multiplier in the economy is 4