If a household's income rises from $46,000 to $46,700 and its consumption spending rises from $35,800 to $36,400, then its:
a. marginal propensity to consume is 0.86.
b. marginal propensity to consume is 0.99.
c. marginal propensity to consume is 0.98.
d. marginal propensity to save is 0.01
e. marginal propensity to save is 0.86.
a
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Marginal revenue measures the change in
a. output generated by a change in price b. price generated by a change in output c. output generated by hiring one more factor of production d. total revenue generated by a change in price e. total revenue generated by a change in output
Mika withdraws $100,000 from her trust fund to start up her own manicure business. The trust fund earns 4 percent interest. In order to properly account for all costs of her business, Mika must not forget:
A. the explicit cost of $4,000. B. the implicit cost of $4,000. C. the implicit cost of $104,000. D. the explicit cost of $104,000.
The employee is thinking like an entrepreneur in which of the following situations?
A) A cashier rings up the total purchase price of the goods in the customer's cart. B) A staff member brings a plan to the supervisor which describes how to reduce costs and attract new customers. C) An employee attends a monthly staff meeting on company policies and procedures. D) An hourly employee goes to work and performs only the required tasks.
In 1990, Britain joined the ERM. If the German Bundesbank increased interest rates, assuming Britain does not maintain its exchange rate peg:
A) the only option available to Britain would be to increase its interest rate. B) the British pound would depreciate. C) the British pound would appreciate. D) the British economy would slow down.