If your disposable personal income increases from $30,000 to $40,000 and your savings increases from $2,000 to $4,000 . your marginal propensity to save (MPS) is:
a. 0.2.
b. 0.4.
c. 0.5.
d. 0.8.
e. 1.0.
a
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Most employees ________ pay taxes on the value of health insurance provided by employers, and most people ________ get a tax break when buying individual health insurance policies
A) do; do B) do not; do not C) do not; do D) do; do not
To be considered well capitalized, a bank's leverage ratio must exceed
A) 10%. B) 8%. C) 5%. D) 3%.
Suppose a monopoly firm has an annual demand function of Qd = 20,000 - 250P, annual variable costs of VC = 16Q + 0.002Q2 and marginal cost of MC = 16 + 0.004Q, where Q is the annual quantity of output. In addition, the firm has an avoidable fixed cost of $25,000 per year. If this firm maximizes its profit, what is the value of the deadweight loss caused by this monopoly?
A. $242,000 B. $55,250 C. $30,250 D. $5,250
Assume potential GDP is $16 T. If the economy is in a short-run recession, there will be labor ____, which will cause wages to begin to ___
a. surpluses; decrease b. shortages; increase c. surpluses; increase d. shortages; decrease