Jack Nelson, a supervisor in the hardware department at Sears, received a $3,000 increase in his annual disposable income. Suppose his marginal propensity to consume is 0.80. How much of the $3,000 increase will Jack spend on consumption?
A) $3,000 B) $2,750 C) $2,200 D) $2,400 E) $2,500
D
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A "market" is an arrangement that allows people to exchange things
Indicate whether the statement is true or false
Refer to Figure 13.2. If Oliver's political views place him at the L4 position and George's political views place him at the C4 position, Alice's preference for mayor is
A) Oliver Cousins. B) George Glass. C) Alice is indifferent between the two candidates. D) Alice definitely does not like either candidate.
When demand is unit elastic
A) price and revenue move in opposite directions. B) price and revenue are not related. C) price and quantity demanded move in opposite directions. D) price and revenue move in the same direction.
In a labor market generally biased against Hispanics, a reduction in the collective discrimination coefficients of employers will:
A. reduce the Hispanic wage rate, increase Hispanic employment, and lower the actual Hispanic-white wage ratio. B. reduce the Hispanic wage rate, decrease Hispanic employment, and lower the actual Hispanic-white wage ratio. C. increase the Hispanic wage rate, increase Hispanic employment, and increase the actual Hispanic-white wage ratio. D. increase the Hispanic wage rate, reduce Hispanic employment, and increase the actual Hispanic-white wage ratio.