Whenever income is less than expenditure for a period of time, a nation will experience:
A) a deficit in its current account
B) A surplus in its current account
C) A fall in GDP
D) None of the above
Ans: A) a deficit in its current account
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When Andrew earns no income, his base consumption is $500 . When he earns $3,000 per week, he consumes $2,100 per week and saves the rest. If his weekly income increases by $1,000 . then his total consumption is expected to increase to _____
a. $5,800 b. $3,300 c. $6,900 d. $1,500
?Kites /hourSnowboards /hourJesse81April123
Consider two individuals, Jesse and April, who hand paint kites and snowboards. Table 3.2 shows how much of each good Jesse and April can paint in one hour. Which of the following is true?
A. April has an absolute advantage in painting kites but not snowboards. B. April has an absolute advantage in painting snowboards but not kites. C. April has an absolute advantage in painting both goods. D. April does not have an absolute advantage in painting either good.
Brad ate four bags of chips at the baseball game. The first bag tasted best, but he found that as he ate more chips the amount of extra satisfaction he was receiving was beginning to fall. This would demonstrate
A. the law of diminishing costs. B. the law of diminishing marginal utility. C. the law of total utility maximization. D. the law of zero utility.
Refer to Table 20.1. George is a single taxpayer with an income of $65,000. What is George's marginal tax rate?
A) 19% B) 27% C) 38% D) 57%