How much is the marginal propensity to consume when disposable income rises from 0 to $1 trillion?
A. 0
B. .25
C. .5
D. .75
C. .5
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Suppose that two supply curves pass through the same point. One is steep, and the other is flat. Which of the following statements is correct?
a. The flatter supply curve represents a supply that is inelastic relative to the supply represented by the steeper supply curve. b. The steeper supply curve represents a supply that is inelastic relative to the supply represented by the flatter supply curve. c. Given two prices with which to calculate the price elasticity of supply, that elasticity would be the same for both curves. d. A decrease in demand will increase total revenue if the steeper supply curve is relevant, while a decrease in demand will decrease total revenue if the flatter supply cure is relevant.
.How will an unanticipated decrease in aggregate demand influence equilibrium output in the goods and services market?
What will be an ideal response?
Use the table below to answer the following question.ProducerMinimum Acceptable Product PriceActual Product Price (Equilibrium Price)Kimberly$6$13Drake713Nicki913Victoria1113If the equilibrium price increases, the
A. consumer surplus will increase. B. producer surplus will decrease. C. producer surplus will increase. D. allocative efficiency will increase.
Special interests influence tax policy at all levels of government, but ______
a. they are most effective at the local level b. they are most effective at the state level c. they are most effective at the federal level d. they are equally effective at all levels of government