Which one of the following is an example of a financial investment but not an economic investment?
A. A renovation of a shopping mall
B. An addition to a petroleum refinery
C. Building a new store
D. Buying gold to sell later at a higher price
D. Buying gold to sell later at a higher price
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The absolute value of the slope of the budget constraint is equal to
A) the quantity of the good on the vertical axis divided by the quantity of the good on the horizontal axis. B) the price of good on the horizontal axis divided by the price of the good on the vertical axis. C) the marginal rate of substitution between the two goods in question. D) the price of good on the vertical axis divided by the price of the good on the horizontal axis.
As prices rise, people will buy fewer goods and services because
a. the interest rate has declined. b. aggregate demand has increased. c. the purchasing power of the fixed quantity of money has declined. d. the income of households has increased.
Even though the average income in the United States has continued to grow, the poverty rate has increased to over 20% since the early 1970s
a. True b. False Indicate whether the statement is true or false
The marginal propensity to save (MPS) is
A. the percentage of an additional dollar of real disposable income that will go toward additional real savings. B. the percentage of real disposable income saved. C. the rate at which real savings changes over time. D. the difference between the amounts of real disposable income consumed and saved.