Which of the following would be a fixed input for an amusement park?
A) ticket booth workers
B) unpopped popcorn
C) concession workers
D) a roller coaster
Answer: D
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The U.S. government has frequently used a "command-and-control" approach in dealing with pollution. Which of the following describes this approach?
A) The government imposes quantitative limits on the amount of pollution firms are allowed to generate. B) The government distributes information to consumers and producers on how to reduce pollution. C) The government uses subsidies to encourage firms to use new technology that reduces pollution. D) The government uses taxes in order to internalize the externalities caused by pollution.
Suppose the MPC in an economy is 0.9. The APC is initially 0.95 and disposable income is $4 billion. If disposable income increases to $14 billion, what is the new level of consumption?
A. $12.8 billion. B. $12.6 billion. C. $13.3 billion. D. $9 billion.