If your income increases from $30,000 to $35,000 and your consumption increases from $11,000 to $12,000 . your marginal propensity to consume (MPC) is:
a. 0.2.
b. 0.4.
c. 0.5.
d. 0.8.
e. 1.0.
a
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Which of the following parties benefits from an import quota but not from a tariff?
A) the foreign government B) the person with the right to import the good C) domestic producers D) domestic consumers E) the domestic government
Use the answer you found when adding market demand curves vertically in Question 18 above to find the market equilibrium quantity if the market supply is constant at 4 units.
What will be an ideal response?
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars
A. remains constant. B. decreases. C. initially increases, then decreases. D. increases.
Refer to the given diagram, where S d and D d are the domestic supply and demand for a product and P c is the world price of that product. If this economy was entirely closed to international trade, equilibrium price and quantity would be:
A. P a and z.
B. P a and x.
C. P c and z.
D. P c and v.