When the marginal propensity to consume is less than 1, the
A. average propensity to save is greater than 1.
B. marginal propensity to save is positive.
C. average propensity to consume is greater than 1.
D. marginal propensity to save is negative.
Answer: B
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Define incrementalism and give two reasons why incrementalism might be efficient
What will be an ideal response?
In behavioral economics, the endowment effect refers to the fact that
A) most people believe that most wealthy people inherit their wealth. B) many people would be indifferent between being endowed with money or knowledge. C) many people place a higher value on what they own than the same item they are considering purchasing. D) most people respond to tax incentives to provide an endowment for their children.
If a perfectly competitive firm shuts down in the short run, its variable cost equals zero
a. True b. False
The U.S. military aircraft industry sought protection from foreign competition by using the __________ argument to persuade Congress to impose trade restrictions
a. infant industries b. diversity of industries c. retaliation d. antidumping e. national security