Suppose the consumption equation is represented by the following: C = 250 + .75YD. Given this information, the marginal propensity to save is
A) .25.
B) .7.
C) 1.
D) 4.
E) none of the above
A
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Which of the following statements is correct? Classical economists
a. believe demand as well as supply determines aggregate output. b. believed in an active role for government in managing the economy through tax policy. c. gave little explicit attention to factors that determined the overall demand for commodities. d. were worried about depressions that could come about because of too little government consumption.
Lisa runs a local flower shop, if it rains on Valentine's Day and she opens the shop, she will lose $200. If it does not rain on Valentine's Day, she will earn $500 dollars as profits
The chance of rain is 30%, the standard deviation of the profits Lisa could earn on Valentine's Day is A) 198.17. B) 135.61. C) 432.43. D) 290.
Under the principle of comparative advantage total output is greatest when each product is made by the country that
A. enjoys an absolute advantage. B. has the lowest opportunity cost. C. has the lowest wage rates. D. has the lowest degree of specialization.
Restaurants like to give away free salty peanuts while you wait for your food in order to encourage you to
A. Buy more beverages. B. buy more peanuts at the souvenir shop. C. Buy expensive salty food on the menu. D. None of the choices are correct.