As real disposable income decreases, the average propensity to consume (APC)
A. is always be below MPC.
B. increase.
C. remains unchanged.
D. decreases.
Answer: B
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To measure the fit of the probit model, you should:
A) use the regression R2. B) plot the predicted values and see how closely they match the actuals. C) use the log of the likelihood function and compare it to the value of the likelihood function. D) use the fraction correctly predicted or the pseudo R2.
Business executives are more honest that other groups because
A) they serve customers. B) they serve the market. C) they are regulated. D) because they want to earn accounting profits.
If A is preferred to B and C is preferred to D, then B must be preferred to C to satisfy transitivity
a. True b. False Indicate whether the statement is true or false
Which statement is false?
A. Under the United States' economic system, most of the important decisions are made in the market place. B. In the United States' economy the price mechanism determines the answers to the United States' three basic questions-what, how, and for whom. C. Most economists would agree that the price system leads to a very efficient allocation of resources. D. None of these statements are false.