The fraction, or percentage, of total income which is saved is called the:
A. Average propensity to save
B. Marginal propensity to save
C. Disposable income schedule
D. Saving schedule
A. Average propensity to save
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According to the natural rate hypothesis: a. a short-term as well as long-term trade-off exists between unemployment and inflation
b. economic fluctuations are the result of external negative and positive productivity shocks to the economy c. workers and consumers incorporate the likely consequences of government policy changes into their expectations by quickly adjusting wages and prices. d. the economy will self-correct to the natural rate of unemployment.
Propose that you work for Taco Bell and you advertise during American Idol. Their rating is 19. This is equal to 21.3 million TV's. American Idol charges $700,000 for a 30-second ad. If a meal contribution at Taco Bell is $0.60, how many purchases are required to break even for the ad costs?
a. 1,454,598 b. 700,000 c. 420,000 d. 1,116,667
Suppose the population of Robstown is 120,000. Of the population 16 years and older, 50,000 are employed, 10,000 have never worked and are not looking for work, 5,000 are not working and are looking for work, and 15,000 are retired and not looking for work. The number unemployed equals
A. 15,000. B. 5,000. C. 10,000. D. 20,000.
Refer to Scenario 19.2 below to answer the question(s) that follow.SCENARIO 19.2: An individual earning $40,000 pays $3,200 in taxes. The marginal tax rate on any income earned above $40,000 is 20%.Refer to Scenario 19.2. When this person earns $60,000, her tax payment would be
A. $4,000. B. $7,200 C. $12,000. D. indeterminate from this information.