The marginal propensity to consume is calculated by
A) dividing the change in income by the change in consumption.
B) dividing income by consumption.
C) dividing consumption by income.
D) dividing the change in consumption by the change in income.
D
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"He [the producer] intends only his gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention." What famous economist made this statement?
a. Alfred Marshall b. Friedrich Hayek c. Adam Smith d. David Ricardo
Poverty is most likely to decrease in which of the following situations:
A. The size of the labor force decreases. B. Population grows more rapidly than GDP. C. The population decreases and GDP stays constant. D. Population and the economic growth rate both decrease.
Figure 7-6
In the price range between $3 and $4, the price elasticity of the demand curve depicted in is
a.
highly elastic.
b.
approximately equal to -0.33.
c.
approximately equal to -3.
d.
of unitary elasticity.
A monopolist spent $450 in TV commercials. Such advertisement changed the monopolist inverse demand curve from p = 40 - q to p = 50 - q. The monopolist marginal cost is $4 and it has no fixed cost. The TV commercials
A) decreased the monopolist's revenue. B) decreased the monopolist's profit. C) increased the monopolist's profit. D) did not affect the monopolist's profit.