If income rises from $1,000 to $1,400 and consumption rises from $800 to $1,168, the marginal propensity to consume is __________ percent
A) 8
B) 85
C) 15
D) 92
D
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Consider the production possibilities frontier displayed in the figure shown. A society faced with this curve currently:
A. cannot obtain point B.
B. can only obtain point C.
C. can only obtain point D or point A.
D. cannot obtain point C.
The total producer surplus enjoyed by all sellers in a market
a. exceeds the market price b. is measured by the area below the market supply curve c. is called market producer surplus d. is the area below the market demand curve minus the area below the market supply curve e. is the area below the market supply curve minus the area below the market price
A reduction in aggregate demand will normally reduce
a. prices. b. real GDP. c. employment. d. All of the above are correct.
Suppose the demand curve and the supply curve in a market are both linear. To begin, there was a $5 tax per unit, and the $5 tax resulted in a deadweight loss of $1,500 . Now, the tax per unit is higher, with the higher tax resulting in a deadweight loss of $6,000 . What is the amount of the new tax per unit?