Suppose the people of Rhodia spend $70 and save $30 for every $100 they earn. In this case, the marginal propensity to consume equals _____
a. 0.3
b. 0.7
c. 0.5
d. 0.8
b
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Marginal revenue for a price taker is
A) equal to price. B) less than price. C) more than price. D) unrelated to price.
Property rights often remain poorly defined because of _____
a. difficulty enforcing ownership once defined b. government fiat c. strong incentives towards the status quo d. monopolies
Interest rates are positive because
A) people prefer future consumption over current consumption. B) people prefer current consumption over future consumption. C) usury laws require rates to be very high. D) banks are not competitive.
When people talk about U.S. intellectual property rights, what are they talking about?
A. The existence of high-quality educational institutions such as the Ivy League schools. B. The abstract nature of ownership in corporate organizations. C. The human capital of the U.S. labor force. D. Ideas and knowledge protected by patents and copyrights.