The change in consumption divided by the change in disposable income is called the
A. marginal propensity to consume.
B. probability of spending.
C. the marginal product.
D. marginal aggregate spending.
Answer: A
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According to neoclassical growth theory, the higher real GDP per person from economic growth will
A) not last because the population will increase. B) last because there is no link between growth and population. C) last indefinitely regardless of any other factor. D) last as long as technological change continues.
In a monopsonistic labor market, workers are paid a wage:
a. below their MRP. b. equal to the intersection of MRP and S. c. equal to the MFC. d. equal to the price of the output. e. above their MFC.
In 1975, Richard Petty won the NASCAR race in Richmond, earning $6265. In 2006, Dale Earnhardt, Jr., won the race, earning $239,166. The CPI index was 52.5 in 1975 and 198.7 in 2006 (base year = 1982-1984). Calculate the real earnings (based on base year 1982-1984) of both Petty and Earnhardt.
What will be an ideal response?
A line that rises from left to right has a positive slope
a. True b. False Indicate whether the statement is true or false