Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. What is the value of the average propensity to save equal when real disposable income equals $14,000?
A) 1.1 B) 0.91 C) 0.09 D) 0.7
C
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Refer to Exhibit 9-7. Which point is representative of the economy experiencing labor market shortages?
a. A
b. B
c. C
d. E
If the economy is in a recession, and the government raises taxes in an effort to balance the budget, the Keynesian model indicates the likely effect will be to
a. counteract the recession. b. prolong the recession and increase its severity. c. end the recession sooner. d. increase the level of real GDP.
A barber shop produces 192 haircuts a day. Each barber in the shop works 8 hours per day and produces the same number of haircuts per hour. If the shop's productivity is 2 haircuts per hour of labor, then how many barbers does the shop employ?
a. 8 b. 12 c. 16 d. None of the above is correct.
Your parents have given you a new car on your 16th birthday for which they paid about $24,000. Assume this is also the price you would get if you decided to sell the car a month after getting it. The monthly costs of driving the car are $100 for oil changes and $200 for gas. If you decide to keep the car, the total costs of the car to you this month will be
A. $2,300. B. $24,300. C. $300. D. $0.