The statement, "John buys more of good X as his income increases, Ceteris paribus," means:
A. John's income is being held constant.
B. John's purchases of good X are being held constant.
C. John's income and purchases of this good are being held constant.
D. the price of this good is being allowed to change.
Answer: D
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When stock prices become more volatile, the ________ curve for gold shifts right and gold prices ________, everything else held constant
A) demand; increase B) demand; decrease C) supply; increase D) supply; decrease
Mathematically, the value of the spending multiplier in terms of the marginal propensity to consume (MPC) is given by the formula:
a. MPC ? 1. b. (MPC ?1) / MPC. c. 1 / MPC. d. 1 / (1 ? MPC).
A French worker can produce either 4 barrels of wine or 16 shirts a week; and Italian worker can produce either 10 barrels of wine or 20 shirts a week.
A. After the countries begin to trade, one barrel of wine will cost between four and eight shirts. B. France has an absolute advantage in both wine and shirts. C. France will export shirts and import wine. D. France has an absolute advantage in making shirts.
According to the Cost-Benefit Principle, you should go see the latest Star Wars movie with your friends this weekend if:
A. the extra benefits of seeing the movie are greater than the extra costs of seeing the movie.
B. you can afford to go to the movies.
C. the average benefit you get from going to the movies is greater than the average cost of a ticket.
D. you really like Star Wars.