The marginal propensity to consume (MPC) is the
A. percentage by which disposable income increases when consumption increases by 1%.
B. percentage by which consumption increases when disposable income increases by 1%.
C. amount by which disposable income increases when consumption increases by $1.
D. amount by which consumption increases when disposable income increases by $1.
Answer: D
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In game theory, we usually assume that all players
A) act rationally. B) use the information available to them to decide on a best strategy. C) know about the payoffs of the other players. D) All of the above.
Zachary spends his day studying for a total of four hours and exercising for one hour. Using the concept of utility to explain his choices, we can say
A. the total utility gained from exercising for one hour is greater than the total utility from studying for four hours. B. the marginal utility of exercising for the first hour was greater than the marginal utility of studying for the first hour. C. the marginal utility of studying for a fifth hour will be negative. D. the marginal utility from studying for a fifth hour is less than the marginal utility from the first hour of exercise.
Suppose the demand curve for corn is inelastic between the current price and price that exists after the supply of corn falls. It follows that
A) fewer farmers are producing corn at the new price than at the old price. B) the total revenue for corn is lower at the new price than at the old price. C) the total revenue for corn is higher at the new price than at the old price. D) more farmers are producing corn at the new price than at the old price. E) a and c
The financial crisis in the United States in 2007-2009 brought about all but which of the following changes:
A. a run on money-market mutual funds. B. the placement of the two government-sponsored enterprises for housing finance into conservatorship. C. an increase in the deposit share of the top four U.S. commercial banks. D. a rise in the number of unit banks.