Refer to Table 23-3. Given the consumption schedule in the table above, the marginal propensity to consume is
A) 0.1. B) 0.3. C) 0.6. D) 0.9.
D
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Suppose the consumer's indifference curves are concave (i.e., bowed away from the origin) instead of convex. In this situation,
a. along an indifference curve, the marginal value of X is falling as more X and less Y is consumed. b. all baskets on the budget line give the consumer the same level of satisfaction. c. the marginal value of X must equal PX/PY at the consumer's optimum. d. the consumer's optimum is always a corner solution.
Suppose that demand for a product falls, but prices are sticky. What is likely to happen to prices and output in that market, in the short run?
What will be an ideal response?
Draw a scatter diagram of the interest rate and the unemployment rate. Describe the relationship
What will be an ideal response?
Exhibit 4-11 Data on supply and demand Bushels demandedper month Price perbushel Bushels suppliedper month 45 $5 77 50 4 73 56 3 68 61 2 61 67 1 57 Which of the following would occur if the government imposed a price floor (support price) of $4 per bushel in the wheat market shown in Exhibit 4-11?
A. Buyers would want to purchase more wheat than is supplied. B. Buyers would not purchase all of the wheat grown. C. Shortage of wheat would increase the price of wheat. D. Farmers would grow less wheat.