The marginal propensity to consume describes ________
A) the tendency to consume fringe, or unusual items
B) the impact of a change in spending on income
C) the impact on consumption resulting from a change in income
D) lifetime consumption resources
C
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Refer to the figure below. Based on the diagram, the nominal interest rate equals ________ and the money supply equals ________. 
A. 7%; 300 B. 5%; 500 C. 1%; 500 D. 3%; 700
In a perfectly competitive constant-cost industry:
A. there is no way to predict what will happen to factor prices as industry output increases. B. factor prices rise as industry output increases. C. factor prices fall as industry output increases. D. factor prices do not change as industry output increases.
If someone suddenly developed a new technology that caused energy prices to drop significantly, it would most likely cause a ______.
a. negative supply shock b. positive supply shock c. period of high inflation d. period of high unemployment
Assigning prices to environmental damage is relatively
A. Easy because the government has the legislative authority to assign prices. B. Difficult because many items have intangible benefits and thus do not have a market price. C. Easy because of current scientific techniques. D. Easy because all items have a market value.