Import substitution is the only strategy used by developing countries to develop their manufacturing industries

In the figure above, what would happen to the size of the multiplier if marginal income tax rates were increased?

A) The multiplier would fall in value and might become negative. B) The multiplier would not change in value. C) The multiplier would fall in value but would not become negative. D) The multiplier would rise in value. E) More information is needed to determine the effect on the size of the multiplier.

John loves to travel. He would never turn down the opportunity to go on a trip. This means that, for John:

a. the total utility of travel always increases. b. marginal utility of travel never decreases. c. the law of diminishing marginal utility does not apply to travel. d. marginal utility of travel is always zero. e. extra travel yields zero consumer surplus.