If the marginal propensity to consume is .9, then the marginal propensity to save must be:
A. 1.
B. .1.
C. 1.1.
D. .9.
B. .1.
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Figure 3-2
In Figure 3-2, the production possibilities frontier has a bowed-out shape because of the law of
A. decreasing costs. B. increasing costs. C. demand. D. comparative advantage.
A shift in the demand curve will occur when
A. suppliers place more goods on the market. B. the price of a good rises. C. consumers want to buy more or less than before at a given price. D. the price of the good falls.
Which of the following is the best example of a monopolistically competitive market?
A) The wheat market. B) The electricity market. C) The restaurant market. D) The market for automobiles.
An increase in income tax rates will
A) make it more expensive for an entrepreneur to purchase a tax deductible luxury automobile for business purposes. B) make it less expensive for a successful lawyer to attend a tax deductible professional meeting in Hawaii. C) improve the efficiency of resource use. D) increase the incentive of the spouse of a highly successful lawyer to work and earn additional income.