If the government decides to spend an extra $4 billion on fighter jets that they would otherwise have spent on computers, and the MPC = 0.75, what is the effect on AD?

The price elasticity of demand for corn is 0.4. A new hybrid of corn is discovered and all farmers start to use it, which increases the quantity of corn they can produce from each acre. What happens to the farmers' total revenue?

A) The total revenue will increase. B) The total revenue will decrease. C) The total revenue will not change. D) There is not enough information to determine what happens to the total revenue.

The use of trade barriers to enforce standards abroad raises all of the following concerns EXCEPT

A) the potential deadweight losses in consumption and production at home. B) the potential for the use of trade barriers to erupt into a bigger trade war. C) the difficulty of knowing whether some of the concerns are over standards or are veiled protectionism. D) only small countries may be able to use trade barriers effectively.