If the MPC = 0.9 and a household obtains $20,000 more dollars then how much would the household spend of the additional $20,000?
A. $20,000
B. $2,500
C. $17,500
D. $18,000
D. $18,000
You might also like to view...
Refer to Scenario 2. If the age of a house increases by 1 year given that the square feet is held constant, what is the impact on the house's market value?
What will be an ideal response?
Consider two resource markets in which the demand curves slope downward. In market A, the supply curve is horizontal, equilibrium price is $6, and 100 units of the resource are hired. In market B, the supply curve is vertical, equilibrium price is $20, and 30 units of the resource are hired. Which of the following is true?
a. Total resource earnings are the same in both markets. b. Total resource earnings are greater in market A. c. Total resource earnings are greater in market B. d. There is more economic rent in market A. e. There is derived demand in market A, but not in market B.
Which of the following groups has the highest percentage below the poverty threshold?
a. householder with no high school diploma b. family with seven or more people c. black d. white e. single mothers
Always Round Tire has service stores in many parts of the United States. The stores in Tennessee have petitioned for independent local store managers. The managers claim that since Memphis, Nashville, and Knoxville are hundreds of miles apart, each manager is really in a separate market and needs to deal with local marketing, sales, and pricing issues independently. What issues would need to be considered before giving these local managers the authority that they are requesting?
What will be an ideal response?