If the marginal propensity to save is 0.4 and disposable income increases from $1,000 to $2,000, saving will increase
A. $400.
B. $200.
C. $300.
D. $100.
Answer: A
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An economy produces only 500,000 tables valued at $100 each. Of these, 100,000 are sold to consumers, 200,000 are sold to businesses, 100,000 are sold to the government, and 50,000 are sold abroad. No tables are imported. At the end of the year, the table manufacturers hold the unsold tables in inventory. What is the value of the investment component of GDP?
A. $25 million B. $2 billion C. $10 million D. $20 million
Although it has had some criticism for ineffectiveness, in what way has the North American Agreement on Labor Cooperation had some positive benefits?
a. It created an institutional forum for the discussion of labor issues in Canada, the United States, and Mexico b. It prohibited any one NAFTA member country from publicly revealing violations of labor laws in other NAFTA member countries. c. It reduced the emphasis on labor rights as a legitimate trade issue d. All of these answer choices are examples of the positive benefits.
Firms are willing to change the aggregate quantity of output supplied based on price in:
A. both the short and long run. B. the short run only. C. the long run only. D. Price does not affect the quantity that firms supply.
Bob Toshida has the demand schedule for dress shirts shown in the table below.
A) His total utility from three shirts would be _____.
B) His marginal utility from the fourth shirt would be _____.
C) If the price were $3, his consumer surplus would be _____.