If a household's income falls from $26,000 to $24,000 and its savings fall from $1,000 to $500, then its _____
Fill in the blank(s) with the appropriate word(s).
marginal propensity to save is 0.25.
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Prices of California Merlot wine (assume that this is a normal good) have risen steadily in recent years. Over this same period, prices for French oak barrels used for wine storage have dropped and consumer incomes have risen
Which of the following best explains the rising prices of California Merlots? A) The supply curve for Merlot has shifted to the right while the demand curve for Merlot has shifted to the left. B) The demand curve and the supply curve for Merlot have both shifted to the left. C) The demand curve for Merlot has shifted to the right more than the supply curve has shifted to the right. D) The supply curve for Merlot has shifted to the right more than the demand curve has shifted to the right.
Cold Duck Airlines flies between Tacoma and Portland. The company leases planes on a year-long contract at a cost that averages $600 per flight. Other costs (fuel, flight attendants, etc.) amount to $550 per flight. Currently, Cold Duck's revenues are $1,000 per flight. All prices and costs are expected to continue at their present levels. If it wants to maximize profit, Cold Duck Airlines should
a. drop the flight immediately. b. continue the flight. c. continue flying until the lease expires and then drop the run. d. drop the flight now but renew the lease if conditions improve.
If demand is price inelastic, when price falls, the total revenue ______, and when price rises, the total revenue _____.
a. falls; remains constant b. remains constant; rises c. falls; rises d. rises; falls
When the prevailing market wage is above equilibrium, we say:
A. the quantity of labor demanded is more than the quantity supplied. B. there is a surplus of labor. C. there is no unemployment. D. All of these are true.