The marginal propensity to consume measures the ratio of the:
a. average amount of our disposable income that we spend.
b. average amount of our savings that we spend.
c. change in consumer spending to a change in money holdings.
d. change in consumer spending to a change in interest rates.
e. change in consumer spending to a change in disposable income.
e
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Comment on the following statement. "Taxing externality-producing activities may not eliminate damages."
What will be an ideal response?
The normal rate of return is the
A) average rate of return earned in an industry at a given point in time. B) opportunity cost of capital. C) return on capital associated with zero accounting profits. D) the amount paid to an investor when the firm is an on-going concern.
Programs that provide goods or services, rather than cash, directly to needy individuals or households are called:
A. social insurance. B. in-kind transfers. C. economic growth. D. conditional cash transfers.
In competitive markets,
a. firms produce identical products. b. no individual buyer can influence the market price. c. no individual seller can influence the market price. d. All of the above are correct.