If the government purchases multiplier is 4 and a change in government spending leads to a $500 million decrease in aggregate demand, we can conclude that
A. Government spending decreased by $125 million.
B. Taxes increased by $500 million.
C. Government spending decreased by $100 million.
D. Taxes decreased by $100 million.
Answer: A
Economics
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The marginal revenue product of labor declines as the number of workers increases because
A) firms hire the most efficient workers first and the least efficient workers last. B) firms must lower prices for the final product when they want to sell more units. C) of the law of diminishing marginal product. D) of diseconomies of scale.
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Property rights have a positive effect in a market economy because they encourage owners to maintain their property.
Answer the following statement true (T) or false (F)
Economics