Assume that an increase in a household's disposable income from $40,000 to $48,000 leads to an increase in consumption from $35,000 to $41,000, then the:
A. Slope of the consumption schedule is .75
B. Average propensity to consume is .75
C. Marginal propensity to save is .20
D. Marginal propensity to consume is .6
A. Slope of the consumption schedule is .75
You might also like to view...
Which of the following increases in labor demand is due to a change in the product demand?
A. A decrease in the price of trucks decreases the cost of transporting goods, thus increasing the demand for truckers. B. Tourism increases in popularity, increasing the demand for workers at tourist resorts. C. A change in work rules increases output per worker in the auto industry, thus increasing the demand for auto workers. D. Access to computers increases the productivity of mail order businesses, thus increasing the demand for their workers.
The table above gives costs at Jan's Bike Sho
A) $200 B) $300 C) $400 D) $500 E) None of the above answers is correct.
In a monopoly, producer surplus is
A) larger than under perfect competition. B) is equal to that under perfect competition. C) smaller than under perfect competition. D) None of these choices is true.
Suppose that both the supply of iPads and the demand for iPads decrease. One can predict that the:
A. equilibrium price and quantity will rise. B. equilibrium price and quantity will fall. C. equilibrium price will rise, but the change in equilibrium quantity is uncertain. D. equilibrium quantity will fall, but the change in equilibrium price is uncertain.