If consumption is $1,230 when disposable income is $1,420, and consumption is $1,400 when disposable income is $1,620, then the marginal propensity to consume (MPC) is
A) 1.15.
B) 0.15.
C) 6.67.
D) 0.85.
D
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If a firm is a price taker, then it can
a. sell below the market price and increase its economic profit b. sell all it wants at the market price c. sell above the market price and increase its economic profit d. supply the entire market e. choose its own price
The above figure shows Katie's consumption possibilities. The relative price of a movie ticket is
A) 1 restaurant meal. B) 0.25 restaurant meals. C) 4 restaurant meals. D) 2 restaurant meals.
If a country is concerned about protecting a particular industry for national security reasons, which of the following policies is most effective from an economic standpoint?
A. Voluntary export restraints on countries exporting goods to the United States B. Import licensing C. Targeted government subsidies D. Protectionist tariffs
Suppose you have money income of $10, all of which you spend on Coke and popcorn. In the diagram, the prices of Coke and popcorn respectively are:
A. $.50 and $1.00.
B. $1.00 and $.50.
C. $1.00 and $2.00.
D. $.40 and $.50.