If a $30 increase in U.S. exports to France causes a $150 increase in U.S. national income, the value of the marginal propensity to consume in the U.S. is
a. 5
b. 0.20
c. 3
d. 0.80
e. not discernible given the information provided
D
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Cross-price elasticity is represented by the formula ?Q/?P × P/Q; where Q and ?Q represent the quantity demanded and change in quantity demanded of a good, and P and ?P represent the price and change in price of a related good respectively
a. True b. False Indicate whether the statement is true or false
A merger between two firms that have a supplier-purchaser relationship is
a. horizontal b. vertical c. conglomerate d. illegal e. a cartel
When prices and unemployment rise, such an event is sometimes called
a) expansion. b) stagflation. c) inflation. d) depreciation.
If the opportunity cost of manufacturing machinery is higher in the United States than in Britain and the opportunity cost of manufacturing sweaters is lower in the United States than in Britain, then the United States will:
A) export both sweaters and machinery to Britain. B) import both sweaters and machinery from Britain. C) export sweaters to Britain and import machinery from Britain. D) import sweaters from Britain and export machinery to Britain.