If consumption is $800 when income is $1,000 . the marginal propensity to consume (MPC) must be 0.80
a. True
b. False
Indicate whether the statement is true or false
False
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The percentage change in the quantity of a good demanded is calculated by:
a. multiplying the absolute change in quantity demanded and the average quantity demanded. b. dividing the absolute change in quantity demanded by the average quantity demanded. c. multiplying the absolute change in quantity demanded and the total quantity demanded. d. dividing the absolute change in quantity demanded by the total quantity demanded.
If a country has a trade surplus then
a. S > I and Y > C + I + G. b. S > I and Y < C + I + G. c. S < I and Y > C + I + G. d. S < I and Y < C + I + G.
Suppose the price level spiked unexpectedly, resulting in unanticipated hyperinflation. How would this affect you personally? Explain how you would have planned differently if you knew the spike in price level was coming.
What will be an ideal response?
Suppose in a democratic society, all voters prefer choice G over choice B; however, when the two choices are presented along with a third choice, R, B wins the election. This violates the assumption of
A) transitivity. B) non-dictatorship. C) independence of irrelevant alternatives. D) completeness.