The equation 
is the
A. average propensity to consume.
B. average propensity to save.
C. marginal propensity to consume.
D. marginal propensity to save.
Answer: C
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Which of the following is an example of capital income?
A) Wage paid to a worker B) Free lunch at work C) Interest earned on money lent out D) Free parking space in a mall
Which of the following is considered a durable good?
A) clothing B) a washing machine C) medical care D) food
If the North American newsprint paper market is a monopoly, then: a. abnormally high profits will attract the entry of new firms
b. the entry of new firms will eventually cause price to decline. c. the quantity produced in the market is larger than the socially optimal level of output. d. entry will remain blocked even if the monopolist earns high profits in the short run.
Which of the following statements is an example of a positive, as opposed to normative, statement?
a. Americans deserve a cleaner environment. b. Reducing emissions reduces days missed from school due to asthma. c. All Americans are entitled to quality health care. d. Economic policies should focus on improving equality.