Use the above table. We can infer from the table that when real disposable income is $175
A. APC = 0.91.
B. APC = 0.20.
C. APC = 0.80.
D. APC = 0.09.
Answer: A
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A good is nonrival if:
A. there is no way to prevent a person from consuming or using it. B. more than one person can consume it at the same time without affecting its value to others. C. consumption of it involves perfect rivalry. D. consumption is completely excludable.
Expansionary monetary policy involves an increase in the money supply and a fall in interest rates, leading to a positive expansion in income
Indicate whether the statement is true or false
How does an economy represented by a straight-line production possibilities curve differ from one represented by a traditional production possibilities curve with a bowed shape?
A. In the economy represented by a straight-line production possibilities curve, the law of increasing relative cost does not apply. B. In the economy represented by a straight-line production possibilities curve, neither good is scarce. C. In the economy represented by a straight-line production possibilities curve, there is no opportunity cost. D. In the economy represented by a straight-line production possibilities curve, changing the amount of resources devoted to the production of each good will not alter the amount of each good actually produced.
Mary and Jane are partners in a business. Their business is growing but has not yet reached the point where they can afford a new delivery truck. Jane owns an old truck that she has not been using. She decides to donate it to their business for free
A) This transaction (donation) involves no economic cost. B) This transaction involves both economic cost and accounting cost. C) This transaction involves economic cost but no accounting cost. D) This transaction involves no economic cost and no accounting cost.