The federal government spends the largest amount of its budget on Social Security, which is an example of
a. federal aid to state and local government
b. discretionary spending '
c. mandatory spending
d. defense spending
Answer: c. mandatory spending
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Which of the following is NOT necessary for a firm to engage in price discrimination?
A) The firm must be able to identify different types of buyers. B) The firm must be able to separate buyers by preventing resales from one customer to another. C) The firm must produce output for different buyers at different costs. D) The firm must sell a product that cannot be resold.
Businesses in the United States cut their investment projects by $30 billion. If the MPC is 2, what will be the impact on the national income (Y)?
A. Y will fall by $15 billion. B. Y will fall by $30 billion. C. Y will fall by $60 billion. D. Y will fall by $120 billion.