Because of the multiplier effect, a $10 million increase in government expenditure will cause the economy's equilibrium level of real GDP to increase by less than $10 million

If a salesperson is paid by the volume of sales he or she makes, then the

A) moral hazard problem is diminished. B) moral hazard problem is enhanced. C) adverse selection problem is enhanced. D) None of the above answers is correct.

If average cost is positive

A) marginal cost equals average cost. B) marginal cost exceeds average cost. C) marginal cost is less average cost. D) Not enough information is given.