The APC is calculated as:
A. change in consumption/change in income.
B. consumption/income.
C. change in income/change in consumption.
D. income/consumption.
B. consumption/income.
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What two key assumptions does the quantity theory make concerning variables in the equation of exchange?
According to the output effect, a decrease in the wage will decrease production costs, so the price of final goods will decrease and the demand for labor will decrease.
Answer the following statement true (T) or false (F)
Using the above figure, if the government levies a new unit tax in this market, S represents the original supply curve, and St represents the after-tax supply curve, then the revenues that the government collects from imposing this tax is represented on this graph by
A. BAEC. B. OAEG. C. CEF. D. OBCG.
Economic models
A) make no assumptions in order to remain as accurate as possible. B) are simplified versions of reality. C) can not be used to analyze real-world issues. D) magnify the complexity of economic issues in order to provide useful data.