Refer to the given data. At an income level of $40 billion, the average propensity to consume:
Answer the question on the basis of the following consumption schedules. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars.
A. is highest in economy (1).
B. is highest in economy (2).
C. is highest in economy (3).
D. cannot be determined from the data given.
B. is highest in economy (2).
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With free trade between China and the United States, the winners are ___________ and the losers are _______
A. U.S. consumers of U.S. imports; U.S. producers of the U.S. import good B. China's consumers of China's imports; China's producers of its export good C. U.S. producers of the U.S. export good; U.S. consumers of U.S. imports D. China's consumers of China's export good; China's producers of its imported good
For which of the following is demand most likely to be perfectly inelastic?
a. BMW automobiles b. Pepsi Cola c. hot dogs d. insulin e. Tylenol
Taxes cause deadweight losses because they prevent buyers and sellers from realizing some of the gains from trade
a. True b. False Indicate whether the statement is true or false
The ________ states that if the costs of transportation are small, the price of the same good in different countries should be roughly the same.
A. price feedback effect B. law of one price C. trade feedback effect D. balance of trade effect