In the definition of marginal propensity to consume, marginal refers to ______.
a. the amount of extra taxes someone pays as a result of government purchases
b. the total income someone receives as a result of government purchases
c. the additional amount of disposable income someone receives
d. the amount of additional income spent on consumer goods and services
c. the additional amount of disposable income someone receives
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Monopoly is characterized by
A) unique products. B) market entry and exit are difficult or impossible. C) non-price competition not necessary. D) All of the above
Employers rely on a job applicant's signals
a. because they are always an accurate indication of the applicant's skills b. because actual abilities are not observable prior to employment c. because actual abilities are not observable after the applicant is hired d. only when hiring someone for an entry-level position e. only when hiring someone who has a college degree
Identify the correct statement form the following
a. Governance prevents buyers in the market from switching between sellers. b. The cost of ending a relationship with a buyer in the market is always high for sellers. c. Goods and the parties involved in market transactions are not interchangeable. d. At market-clearing prices participants can rest assured that shortages or surpluses will not frustrate their expectations.
The CPI and GDP deflator usually tell two different stories about how quickly prices are rising
a. True b. False Indicate whether the statement is true or false