If you real disposable income goes up by $1000 per week, and your real consumption spending goes up by $800 per week, you have an MPS of
A) 0.2.
B) 0.8.
C) 1.2.
D) 1.0.
Ans: A) 0.2.
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A car that is produced in 2016 is not sold until 2017. According to the definition of GDP, in which year's GDP should it be counted?
A) Half of the sales price will count as part of 2016 GDP and half will count as part of 2017 GDP. B) The production cost will count as part of 2016 GDP while the sales price will count as part of 2017 GDP. C) 2017 D) 2016
In the above figure, the production of 25 guitars and 25 ukuleles is
A) efficient production. B) inefficient production. C) impossible production. D) not possible since production always occurs along the PPC.
Which of the following is not a question addressed by macroeconomists?
a. Why is average income high in some nations but low in others? b. What, if anything, can the government do to promote growth in incomes, low inflation, and stable employment? c. What is the impact of foreign competition on the U.S. auto industry? d. Why do production and employment expand in some years and contract in others?
How does minimum wage affect employment?
a. The number of people who want to work fluctuates, contributing to unemployment. b. The number of people who want to work remains fixed, reducing unemployment. c. More people want to work than employers are willing to hire, contributing to unemployment. d. Fewer people want to work than employers are willing to hire, reducing unemployment.