If consumption increases by $9 when disposable income increases by $10, the marginal propensity to consume (mpc) equals:
A. 9.0.
B. 0.9.
C. 1.0.
D. 0.1.
Answer: B
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Assume that the dollar price of a basket of goods in the U.S. is $4 and the Indian price for the same basket is 200 rupees. On the other hand, the dollar price of the Indian basket is $20
Given this information, the Indian price for the Indian basket will be: A) $1,200. B) $1,000. C) $200. D) $5.
Refer to Figure 3-5. At a price of $5
A) there is a shortage of 4 units. B) there is a shortage of 6 units. C) there is a scarcity of 4 units. D) there is a surplus of 4 units.
The matching function exhibits all of the following properties except
A) diminishing marginal product of labor. B) constant returns to scale. C) increasing in matching efficiency. D) increasing in inputs of searching consumers and firms.
The variable used to measure economic growth is
A) the growth of the money supply. B) the trade surplus. C) the growth in per capita real GDP. D) the number of new jobs created.