If the economy is in equilibrium at $600 billion national income and if MPC = 0.75 and intended investment is $25 billion, what happens to national income when intended investment increases to $30 billion? It will
a. increase to $605 billion
b. decrease to $595 billion
c. increase to $620 billion
d. increase to $624 billion
e. decrease to $580 billion
C
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When the price of a sweet roll is $2, the bakery sells 300 rolls per week. If it raises the price to $3, then it sells 150 rolls per week. Based on this, the price elasticity of a sweet roll between these prices is
A. 0.40. B. 1 C. 1.67. D. 0.67.
The United States has had:
A. high relative mobility in the last century, and lower absolute mobility. B. low relative mobility in the last century, and even lower absolute mobility. C. high absolute mobility in the last century, and lower relative mobility. D. low absolute mobility in the last century, but higher relative mobility.
Economic theory assumes people's actions generally follow
A) from comparisons of expected costs and benefits. B) no predictable pattern. C) considerations of material self-interest. D) the Golden Rule.