If the marginal propensity to save is 0.2, what is the expenditure multiplier?
a. 0.8
b. 1.2
c. 2
d. 5
d. 5
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Tom spends $20 a month on CDs and magazines. The price of a CD is $6 and the price of a magazine is $4. When Tom maximizes his utility, the marginal utility from CDs is ________ the marginal utility from newspapers
A) the same as B) 1/2 C) 20 times D) 1 1/2 times
Which of the following is an illustration of the backward-bending supply curve? a. Alex Maxwell is cutting down on the number of hours he works a week because the wage rate he receives has increased
b. Tim Duncan's wage rate is so high that he cannot stop working (playing professional basketball) even though he would like to retire. c. The more Patrick Roy works, the higher is his opportunity cost. d. Steve Hymer quits work because he feels that the employer is paying him a wage rate below his MRP. e. Unskilled workers who do hard (back bending) work earn wages that are considerably below average.
Table 19.2Quantity ConsumedTotal UtilityMarginal Utility115152 9330 4 3In Table 19.2, the marginal utility of the third unit is
A. 30. B. 5. C. 6. D. 3.
As new goods and services become available the basket of goods used to calculate the CPI:
A. immediately changes to reflect them. B. never changes to reflect them. C. doesn't change until 75 percent of urban consumers use them. D. periodically is updated in order to reflect the changes.