What are the marginal propensity to consume and level of autonomous consumption spending for a consumption function of the following form: C = 1,200 + 0.5DI?
a. The marginal propensity to consume is 0.5; autonomous consumption spending is $0.50.
b. The marginal propensity to consume is 0.5; autonomous consumption spending is $1,200.
c. The marginal propensity to consume is 1,200; autonomous consumption spending is $0.50.
d. The marginal propensity to consume is 1,200; autonomous consumption spending is $600.
e. There is insufficient information to answer this.
B
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As Rainclouds Inc moves downward along its production possibilities frontier, illustrated in the figure above, the opportunity cost of a raincoat ________
A) decreases B) depends on the initial quantity produced C) increases D) remains the same
In the ordered pair (10,30), 10 is the horizontal location of the point and 30 is the vertical location of the point
a. True b. False Indicate whether the statement is true or false
Answer the following questions true (T) or false (F)
1. RJR Nabisco has three alternatives for manufacturing snack foods: • Option 1: Manufacture cookies alone and obtain a profit of $30 million. • Option 2: Manufacture chips alone and obtain a profit of $25 million. • Option 3: Manufacture both cookies and chips and obtain a profit of $35 million. Given the information above, the opportunity cost of this firm is $30 million. 2. The number of U.S. farms is on the order of 4 million at present. 3. The value of any index for the reference or base year is always 1.
Related to the Economics in Practice on p. 67: Increased preference for quinoa would shift the ________ curve for quinoa to the right and lead to a(n) ________ in the price of quinoa, ceteris paribus.
A. demand; increase B. supply; decrease C. demand; decrease D. supply; increase