Suppose consumption is $5,000 when income is $8,000 and the MPC equals 0.9. When income increases to $10,000, consumption is
A. $2,700.
B. $4,500.
C. $6,800.
D. $7,200.
Answer: C
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Using the notation Pt to designate this period's price level and Pt-1 to designate last period's price level, the formula for measuring the inflation rate from last period to this period is
A) [(Pt - Pt - 1 ) / Pt] × 100. B) [(Pt -1 - Pt) / Pt - 1] × 100. C) [(Pt - Pt - 1 ) / Pt - 1] × 100. D) [(Pt -1 - Pt) / Pt] × 100.
The sale of western land after 1790 was steady and strong
Indicate whether the statement is true or false
The amount that individuals would have been willing to pay, minus the amount that they actually paid, is called:
a. producer surplus. b. consumer surplus. c. total surplus. d. demand surplus.
Vipsana's Gyros House sells gyros. The cost of ingredients (pita, meat, spices, etc.) to make a gyro is $2.00. Vipsana pays her employees $60 per day. She also incurs a fixed cost of $120 per day. What is Vipsana's total cost per day when she does not
produce any gyros and does not hire any workers? A) $0 B) $2 C) $60 D) $120