The most important characteristic of the equilibrium price is that it:
a. guarantees that producers earn profit.
b. clears the market
c. increases the quantity demanded.
d. decreases the quantity demanded.
b
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Refer to Figure 9.7. Before the policy was implemented, consumer surplus was
A) $30. B) $60. C) $45,000. D) $90,000. E) $180,000.
What is the marginal propensity to consume (MPC) and why is it important in predicting consumer behavior?
The difference between personal income and disposable personal income is that
A. personal income taxes are not included in disposable personal income. B. disposable personal income includes only the funds available to spend on non-necessities. C. personal income does not include transfer payments, such as Social Security payments or welfare payments and disposable personal income includes them. D. personal income includes personal income taxes and indirect business taxes, which are not included in disposable personal income.
Which of the following would most likely NOT be included in the liquidity approach to defining the money supply?
A. money market mutual fund accounts B. traveler's checks C. government bonds D. savings deposits