The marginal propensity to consume (MPC) is computed as the change in:
a. consumption divided by the change in savings.
b. consumption divided by the change in income.
c. consumption divided by the change in GDP.
d. None of these.
b
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Which of the following does NOT affect potential GDP?
A) the quantity of money B) the quantity of labor employed C) the quantity of capital and human capital D) the amount of entrepreneurial talent available E) the quantity of land and natural resources
When the U.S. minimum wage was first passed in 1938, only 56% of workers were employed in covered firms. The incomplete coverage suggests that
A) the partial equilibrium ignores the movement of workers from uncovered sectors to covered sectors. B) the decrease in employment is higher in general-equilibrium analysis. C) the general-equilibrium analysis predicts the wage in uncovered sectors will fall. D) all the workers will be worse off in both general- and partial-equilibrium analysis.
Employing a lawyer to draft and enforce a private contract between parties wishing to solve an externality problem is an example of
a. an opportunity cost. b. an implicit cost. c. a sunk cost. d. a transaction cost.
The focal point of collective bargaining negotiations is generally ___________.
Fill in the blank(s) with the appropriate word(s).