Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. What is the value of the marginal propensity to consume?
A. 0.3
B. 0
C. 1
D. 0.7
Answer: D
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Why are property rights so important for markets?
A. Property rights allow companies to have a monopoly. B. Without property rights there are few incentives to improve, create, or build something, because you cannot legally trade it. C. Property rights force others to pay you more for the good or service. D. Those who have property rights are more likely to create more because they will get more money in the market.
Gross domestic product is the
A) value of the final goods and services produced in a country during a specific time. B) total amount that buyers spent on the final goods and services produced in a country during a specific time. C) total amount of income earned in producing the final goods and services in a country during a specific time. D) All of the above answers are correct.
Refer to Figure 3-2. A decrease in the number of firms in the market would be represented by a movement from
A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.
Fixing the insolvency problem caused by the Great Recession meant:
a. Rapidly increasing the U.S. money supply. b. Relieving financial institutions of toxic assets and injecting new equity into them. c.Changing banking rules so there was more financial competition. d. Opening long-term financing sources, which would allow banks, companies, and the government to fund long-term needs, such as new branches, plants, and infrastructure (e.g., bridges and dams) needs.