If spending decreased by $400, and the GDP decreased $1,000 as a result, the MPC must be:

A. 2.5
B. 0.75
C. 4
D. 0.60

Answer: D

Economics

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Refer to the table above, which gives five points on a nation's PPF. The production of 7 units of X and 28 units of Y is

A) impossible given the available resources. B) possible but leaves some resources less than fully used or misallocated. C) on the production possibilities frontier between points c and d. D) on the production possibilities frontier between points b and c.

Economics

Refer to Table 18-1. Suppose a series of votes are taken in which each pair of alternatives is considered in turn. The first pair considered is between subsidies for education and research on Alzheimer's

The second pair considered is between Alzheimer's research and increased border security. The third pair considered is between education subsidies and increased border security. In this case, the collective preferences of the voters A) turn out to be transitive and will yield a consistent outcome. B) turn out not to be transitive but will yield a consistent outcome. C) turn out not to be transitive and will not result in a consistent outcome. D) turn out to be transitive but will not result in a consistent outcome.

Economics