If the MPC = 0.75 for a particular person this means that:
A. they will spend 75 cents of each new dollar they get.
B. if they receive $1 they want to spend roughly 75%, but probably won’t do so.
C. they will spend 25 cents of the $1 and save 75 cents.
D. if they receive $1 then they want to spend 25% of it.
A. they will spend 75 cents of each new dollar they get.
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The above figure shows the market for labor. The employer is a monopsony. If a minimum wage of $10 is imposed, the equilibrium level of employment is
A) 200 hours per day. B) 400 hours per day. C) 600 hours per day. D) 800 hours per day.
Answer the following statements true (T) or false (F)
1. The elasticity of savings with respect to interest rates is the percentage change in the quantity of savings divided by the percentage change in interest rates. 2. The cross-price elasticity of demand is the percentage change in the quantity of good A that is demanded as a result of a percentage change in the price of good B. 3. The general rule stating that the utility-maximizing choice between consumption goods occurs where the marginal utility per dollar is the same for both goods can be shown with this equation: 4. The typical response to higher prices is that a person chooses to consume less of the product with the higher price. This can occur either because of substitution effect or because of income effect, but not both.
To be efficient, outputs should be produced that minimize total cost
a. True b. False Indicate whether the statement is true or false
If the demand for a good is relatively inelastic, this means that consumer purchases of the good are
a. not very sensitive to the price of the good. b. highly sensitive to the price of the good. c. unrelated to the price of the good. d. unaffected by changes in the income level of consumers.