The marginal propensity to consume (MPC) can best be defined as the fraction of
A. real disposable income that is consumed.
B. real disposable income that is not consumed.
C. a change in real disposable income that is saved.
D. a change in real disposable income that is spent.
Answer: D
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Fiat money is:
a. includes currency and gold in bank vaults. b. does not include coins. c. is backed by any sort of commodity. d. has no value outside of its use as money.
Which of the following statements is true of price fixing?
a. It represents a high level of competition in an industry. b. It is allowed only under the provisions of the Federal Trade Commission Act. c. It is, by definition, illegal, as there is no justification for it. d. It occurs only in perfectly competitive industries. e. It is legal in United States.
Resources include
A. land, labor and money. B. entrepreneurship and capital. C. capital and money. D. corporations and partnerships.
Sometimes On Time (SOT) Airlines is considering buying a new jet. SOT would be more likely to buy a new jet if there were either
a. a decrease in the price of a new jet or a decrease in the interest rate. b. a decrease in the price of a new jet or an increase in the interest rate. c. an increase in the price of a new jet or a decrease in the interest rate. d. an increase in the price of a new jet or an increase in the interest rate.