Assume the marginal propensity to consume (MPC) is 0.80 and the government cuts taxes by $100 billion. The aggregate demand curve will shift to the:
a. right by $80 billion.
b. left by $200 billion.
c. right by $400 billion.
d. left by $400 billion.
e. None of these.
c
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Refer to Goods X and Y. The relative price of good X in terms of good Y is always equal to
Assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions. a. the magnitude of the slope of the budget line. b. the marginal value of X in terms of Y. c. the horizontal intercept of the budget line. d. the vertical intercept of the budget line.
The market demand for MP3 player is p = 50 - 0.5Q, and the marginal cost for Nick to obtain and sell a MP3 player is $10
If he receives $12 for each MP3 player he sells from the store owner and the store owner controls the quantity of MP3's available for sale, then A) 40 MP3 players will be sold. B) joint profit is $798. C) joint profit will be maximized. D) Nick will sell as many as he can.
The marginal revenue curve is the same as the demand curve for the
a. monopolistic competitor b. perfect price discriminator c. oligopolistic price leader d. single price monopoly e. export producer
In which of the following markets is the presence of asymmetric information of little concern to the buyer?
A. The market for used cars B. The market for used computers C. The market for used houses D. The market for used textbooks