If household incomes go up and almost all the increases are spent on consumer goods,
a. the marginal propensity to consume is high.
b. the marginal propensity to consume is low.
c. planned investment must be decreasing.
d. the marginal propensity to save is high.
a. the marginal propensity to consume is high.
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Betty and Veronica are playing Odds or Evens, where Betty is designated as the "odd" player and Veronica is designated as the "even" player. They decide to play the game 10 times
If Betty adopts a pure strategy of "shoot 1," what strategy should Veronica adopt to maximize her payoff?
The Law of Demand is the reason behind:
A) the price elasticity of demand having a positive value. B) the income elasticity of demand having a positive value. C) the price elasticity of demand having a negative value. D) the income elasticity of demand having a negative value.
Jenny buys sodas and popcorn. Sodas sell for $1 and popcorn sells for $2 a bag. Currently she is in consumer equilibrium, with the marginal utility from her last dollar spent on popcorn equal to 100 units of utility
The marginal utility from her last dollar spent on sodas is A) 20 units of utility. B) 30 units of utility. C) 50 units of utility. D) 100 units of utility.
Which of the following statements is true?
a. A vertical merger is a merger of firms that compete in the same market. b. The rule of reason doctrine declares that the existence of monopoly alone is illegal. c. Government regulation is economically justifiable for a natural monopoly. d. Deficient information on unsafe products causes underconsumption.