In an economy, for every $1600 decrease in income, spending falls by $1200. It can be concluded that the:
A. Slope of the saving schedule is 1.33
B. Slope of the saving schedule is 0.75
C. Marginal propensity to consume is 1.33
D. Marginal propensity to save is .25
D. Marginal propensity to save is .25
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There exists a strong ________ correlation between GDP per capita and ________
A) positive; child labor B) negative; life expectancy C) negative; child labor D) positive; unemployment rate
Rayburn Reed is a highly talented photographer. He has chosen to specialize in photography because of all of the following except
A) for him, this is the most lucrative way to purchase the products that he wants to consume. B) his photographs are highly esteemed by art lovers who are willing to pay very high prices. C) he obviously has a comparative advantage in photography. D) his opportunity cost of pursuing another career is very low.
A camera manufacturer will sell its cameras only to retailers who agree to buy its brand of film. This is an example of
a. price discrimination b. exclusive dealing c. a tying contract d. interlocking directorates e. a trust
Rent-seeking behavior creates:
A. waste and inefficiency. B. waste, but is efficient. C. inefficiencies, but not waste. D. efficiency without waste.