An increase in the marginal propensity to consume will result in a(n):
a. steeper consumption function
b. flatter consumption function.
c. upward shift of the consumption function.
d. downward shift of the consumption function.
a
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Fiscal policy affects the ________ market through changes in taxes and government spending.
A. money B. goods C. bond D. federal funds
Economists use models in order to
A. experiment with alternative circumstances. B. make educated guesses about real-life events. C. predict outcomes under various hypothetical conditions. D. increase understanding of how a relationship actually works. E. All of these responses are correct.
The clear winners from the quota are the ________, and the losers are the ________.
A. domestic producers; domestic consumers B. government; domestic consumers C. domestic consumers; domestic producers D. importers; domestic producers
Suppose that differences in skills explain part of the difference in wages by race. Wage differences arising from skill differences:
A. may result from past discrimination in access to education. B. are not attributable to present or past discrimination. C. will disappear when labor markets are in equilibrium. D. are always classified as racial discrimination.