How much is the average propensity to save when disposable income is $400 billion?
A. 0
B. .25
C. .50
D. .75
A. 0
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When a firm buys a product from another firm in the same company, it is charged
A) an implicit price. B) a market price. C) a predatory price. D) a transfer price.
Suppose that in Slovakia one unit of labor can produce either 20 tons of wheat or 40 tons of soy and in Poland one unit of labor can produce either 40 tons of wheat or 20 tons of soy. If each country has two units of labor, which of the following consumption combinations can be attained only with trade?
A. Slovakia consumes 80 tons of soy. B. Poland consumes 40 tons of wheat and 20 tons of soy. C. Slovakia consumes 30 tons of both soy and wheat. D. Poland consumes 80 tons of wheat.
Automated teller machines provided by financial intermediaries are an example of:
A. diseconomies of scale. B. the ability of financial intermediaries to provide liquidity. C. high transactions costs associated with financial intermediaries. D. the ability of financial intermediaries to earn profits by raising transaction costs above the norm.
According to the rational expectations hypothesis, unemployment
A. may exist, and if it does, it will be temporary. B. only exists in the long run. C. may exist, and when it does, it stays for a long period of time. D. does not exist in the short run.