Use the following data to answer the next question.The disposable income (DI) and consumption (C) schedules are for a private, closed economy (an economy with no government and no international trade). All figures are in billions of dollars.Disposable IncomeConsumption$300$310350340400370450400500430The marginal propensity to consume is
A. 0.80.
B. 0.60.
C. 0.40.
D. 0.75.
Answer: B
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Severe fiscal imbalances can directly trigger a currency crisis since
A) investors fear that the government may not be able to pay back the debt and so begin to sell domestic currency. B) the government may stop printing money. C) the government may have to cut back on spending. D) the currency must surely increase in value.
We are given the individual demand curves for all of the people that consume Good Y. Which statement is TRUE about the market demand curve for Good Y?
A) The market demand curve is obtained by horizontally summing the individual demand curves. B) The market demand curve is obtained by vertically summing the individual demand curves. C) The market demand curve cannot be obtained because information on prices is missing. D) The market demand curve cannot be obtained from individual demand curves.
Which one of the following statement is false?
A) Traditional and ecological economics may come up with different policy recommendations B) Most standard natural resource and environmental economics is an extension of microeconomic theory C) Cost-benefit analysis excludes the values of non-marketed goods D) Valuation techniques may be insufficient to capture the scope of global environmental problems
In the equation 
, what is the estimated value of 
?
A. 
B. 
C. 
D. 