If your MPC is 0.5, then when your disposable income increases by $100, your consumption expenditure increases by
A) $200. B) $100. C) $95. D) $50. E) $5.
D
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Explain what is meant by capital
What will be an ideal response?
A perfectly competitive firm has a random marginal cost with a 50 percent chance of a high marginal cost of $10, a 30 percent chance of a marginal cost of $8, and a 20 percent chance of a low marginal cost of $5. What is the firm's expected marginal cost?
A) $7.80 B) $8.00 C) $9.20 D) $8.40
The ECB has favored using ______ as a target for implementing monetary policy.
A) money supply B) inflation targets C) unemployment figures D) fiscal deficits
Despite the fact that water is necessary to sustain life, it is less expensive than milk. Economic theory suggests that this is so because
A. there is a conspiracy among milk producers to hold prices artificially high. B. sellers of water hold the price of water artificially low because of its importance. C. although the total utility of water consumption is high, its marginal utility per dollar spent is low when compared to milk. D. consumers are irrational.