The law of demand states that the quantity of a good demanded varies
A) inversely with its price.
B) inversely with the price of substitute goods.
C) directly with income.
D) directly with population.
A
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A multinational agency that specializes solely in making loans to promote long-term development and growth in developing countries is the
A) Federal Reserve System. B) World Bank. C) International Monetary Fund. D) International World Fund.
If consumption is $800 when income is $1,000 . the marginal propensity to consume (MPC) must be 0.80
a. True b. False Indicate whether the statement is true or false
Individuals have a tradeoff between leisure and work. When income from working is taxed, the cost of leisure is reduced in relative terms
a. True b. False Indicate whether the statement is true or false
The marginal propensity to consume is
a. the fraction of an increase in income that would be spent on consumer goods. b. the additional desire people have for consumer goods. c. the fraction of a person’s total income normally spent for consumer goods. d. the change in consumption resulting from a $1 change in the price level.