If Carol's disposable income increases from $1,200 to $1,700 and her level of saving increases from minus $100 to a plus $100, her marginal propensity to:
A. save is three-fifths.
B. consume is one-half.
C. consume is three-fifths.
D. consume is two-fifths.
C. consume is three-fifths.
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Consider the indifference maps shown above. If eyeglass frames and eyeglass lenses were perfect complements, your indifference curves between them would look like those in
A) Figure A. B) Figure B. C) Figure C. D) Figure D.
Which of the following will most likely cause a decrease the natural rate of unemployment?
a. an increase in the minimum wage b. an increase in unemployment benefits c. an increase in experienced workers aged 25 and over as proportion of the labor force d. an increase in the labor force participation rate of teenagers
Suppose the quality of televisions changes over time, but the quality change goes unmeasured for the purpose of computing the consumer price index. In which of the following instances would the bias resulting from the unmeasured quality change be most severe?
a. The quality of televisions deteriorates and televisions become more expensive relative to other goods. b. The quality of televisions improves and televisions become less expensive relative to other goods. c. The quality of televisions improves and televisions become more expensive relative to other goods. d. The quality of televisions deteriorates and the price of televisions relative to other prices remains unchanged.
The text maintains that people find the workings of the economic system bewildering, largely because____________
Fill in the blank(s) with the appropriate word(s).