If a household's disposable income increases from $50,000 to $100,000 and its consumption increases from $40,000 to $80,000 . the MPS must be _____
a. 0.4
b. 0.8
c. 0.7
d. 0.2
e. 0.5
d
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Some economists believe that the behavior of unemployment in Europe and in the United States during the 1980s and 1990s
A) was the same because both markets experienced adverse labor market shocks. B) differed because the real wage in Europe was rigid. C) was the same because the real wage in Europe and the United States moved together. D) differed because the United States experienced adverse labor market shocks but Europe did not.
When a tax is placed on the buyers of a product, the
a. size of the market decreases. b. effective price received by sellers decreases, and the price paid by buyers increases. c. demand for the product decreases. d. All of the above are correct.
A situation in which a benefit or a cost associated with an economic activity spills over to third parties is called
A. a public good. B. a merit good. C. the free-rider problem. D. an externality.
Refer to the information provided in Figure 16.2 below to answer the question(s) that follow.
Figure 16.2Refer to Figure 16.2. The ________ amount of cars is 35.
A. unregulated B. subsidized C. efficient D. break-even