When a grocery store accepts your $5 bill in exchange for bread and milk, the $5 bill serves as a
A) unit of account. B) standard of deferred payment.
C) store of value. D) medium of exchange.
D
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The only way a consumer can optimize at a corner of her budget is if at least one of the goods is not essential.
Answer the following statement true (T) or false (F)
Using the above figure, the origin is at which point?
A) point a B) point b C) point c D) None of the points in the figure is the origin.
In a two-period model with production, a shock that shifts the output demand curve to the right, and does not shift the output supply curve
A) causes an increase in the current account surplus and an increase in real output. B) causes no change in the current account surplus and an increase in real output. C) causes a decrease in the current account surplus and no change in real output. D) causes a decrease in the current account surplus and an increase in real output.
Exhibit 8-1 Disposable income and consumption data Disposable Income(Y) Consumption(C) 0 500 1,000 1,400 2,000 2,200 3,000 2,900 4,000 3,500 5,000 4,000 In Exhibit 8-1, when disposable income (Y) is increased from $1,000 to $2,000, the marginal propensity to consume is:
A. 0.2. B. 0.6. C. 0.8. D. 1.0.