A market basket:
A. is a tool devised to track how changing prices affect consumers.
B. includes all the goods and services consumed in an economy, including imports.
C. includes all the goods and services produced in an economy.
D. includes all the goods and services consumed in an economy, including net exports.
Answer: A
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Marginal propensity to consume
A) is the amount of consumption that is independent of the level of disposable income. B) is the same as the break-even point. C) is the proportion of total disposable income that is consumed. D) gives the amount a person changes planned consumption for a change in real disposable income.
Gregory is considering attending a concert with a ticket price of $40. He estimates that the cost of driving to the concert and parking there will add an additional $20
In order to attend the concert, Gregory will have to take time off from his part-time job. He estimates that he will lose 5 hours at work, at a wage of $8 per hour. In terms of dollars, Gregory's opportunity cost of attending the concert equals A) $80. B) $100. C) $20. D) $60. E) $40.
Potential GDP is the maximum output a firm is capable of producing
Indicate whether the statement is true or false
The concept of the "best" level of pollution suggests that: a. increased concerns about pollution control shifted the marginal social cost curve to the left
b. the opportunity cost of reducing pollution may sometimes exceed the benefit. c. unregulated markets generally reduce pollution to efficient levels with marginal social cost equal to marginal social benefit. d. none of the above