Suppose saving is $1,400 when income is $10,000 and the MPC equals 0.8. When income increases to $12,000, saving is
A. $1,680.
B. $1,800.
C. $2,200.
D. $3,000.
Answer: B
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Other things equal:
A. Workers with higher levels of human capital will tend to migrate to countries providing greater wage opportunities B. Workers with lower levels of human capital will tend to migrate to countries providing greater wage opportunities C. Smaller wage differences between countries will tend to increase the flow of immigration between countries D. Workers with higher levels of human capital will migrate to higher-wage countries regardless of the distance between countries
Which of the following is a reason for long-run potential growth of real GDP?
A) yearly growth of the labor force B) growth of the stock of physical capital over time C) improvements in technology over time D) all of the above
In the figure above, 10 percent of income in country A is distributed to the
A) richest 10 percent of the households. B) poorest 10 percent of the households. C) richest 30 percent of the households. D) poorest 30 percent of the households.
In the fooling model's labor market diagram, from an initial intersection point of the labor supply and demand curves, tracing "northeast" up the labor supply curve shows
A) what happens to real wages and employment when aggregate demand expands. B) what happens to real wages and employment when aggregate demand contracts. C) what workers think is happening to real wages if an aggregate demand expansion fools them. D) what firms think is happening to real wages if an aggregate demand expansion fools them.