The multiplier applies to:
A. investment but not to net exports or government spending.
B. investment, net exports, and government spending.
C. increases in spending but not to decreases in spending.
D. spending by the private sector but not by the public sector.
B. investment, net exports, and government spending.
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A piece of land is divided between John and Mary. However, only John gets the title to his share of land. Which of the following is true?
a. Both Mary and John will not take care of their lands. b. Mary will have a higher per capita output from her piece of land. c. John will not be able to rent out a portion of his land. d. Mary will have a greater incentive than John to invest in her piece of land. e. John will be able to use his land as collateral for a loan from a bank.
If the labor force in an economy is not fully employed, then
a. the economy is operating outside of its production possibilities frontier b. the economy is operating on its production possibilities frontier c. there must have been an increase in technology to compensate for the labor shortage d. the opportunity cost of producing more of one good is negative e. the economy is operating inside its production possibilities frontier