How much is the marginal propensity to consume when disposable income rises from $600 billion to $800 billion?
A. .5
B. .65
C. .75
D. .85
A. .5
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The figure above shows the market for brooms. If 400 brooms are produced,
A) consumer surplus is maximized. B) producer surplus is maximized. C) market failure and a deadweight loss occur. D) marginal cost is greater than marginal benefit. E) consumer surplus equals zero.
Which one of the following is part of the M2 definition of the money supply, but not part of M1?
a. Checkable deposits. b. Currency held in banks. c. Currency in circulation. d. Small time deposits of less than $100,000.
What ultimately determines what is produced under the concept of consumer sovereignty?
a. owners of capital b. government planning officials c. people who buy products d. people who make products
Suppose that, when producing 10 units of output, a firm's AVC is $22, its AFC is $5, and its MC is $30. This firm's
A. ATC is $35.
B. ATC is $57.
C. total cost is $270.
D. total cost is $30.