A given change in disposable income would have the greatest effect on consumption with which of the following marginal propensities to consume?
a. 0.4
b. 0.6
c. 0.8
d. 0.2
c
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Assume that the economy is at a long run equilibrium and oil prices rise. As a result, the ________ shifts ________
A) AD; rightward B) AD; leftward C) SAS; rightward D) SAS; leftward
Professional organizations (for example, the American Medical Association and the American Bar Association) have been active advocates for regulation to restrict the right of professionals to advertise. Describe what economic incentives might exist for existing professionals to restrict advertising
Which of the following increases the slope of the consumption function?
A) an increase in consumer wealth B) a decrease in the value of consumer durables C) an increase in consumer confidence D) an increase in the marginal propensity to consume
The price of beef increased by 20 percent and the quantity supplied increased by 10 percent. The supply of beef is
A) elastic. B) perfectly elastic. C) perfectly inelastic. D) inelastic. E) unit elastic.