Refer to the given data. Suppose that consumption decreased by $2 billion at each level of DI in each of the three countries. We can conclude that the:
Answer the question on the basis of the following consumption schedules. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars.
A. marginal propensity to consume will remain unchanged in each of the three countries.
B. marginal propensity to consume will decline in each of the three countries.
C. average propensity to save will fall at each level of DI in each of the three countries.
D. marginal propensity to save will rise in each of the three countries.
A. marginal propensity to consume will remain unchanged in each of the three countries.
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In the country of Wilkes, taxes are $5 million and benefits are $4 million. Income from labor is $25 million and income from capital is $15 million. What is market income?
A) $20 million B) $39 million C) $40 million D) $9 million
The stimulation of a large economy aimed at increasing growth in the rest of the world is commonly known as
A) pass-through effect. B) locomotive effect C) investment effect. D) domino effect.
In answer to the question, "Could they see the Great Depression coming?", Hughes and Cain (2011) respond:
(a) No—Many people firmly believed that markets would self-correct and eventually recover with no government intervention (b) No—many people seemed to believe that the prosperity of the 1920s would continue indefinitely because they believed that the economy was built to sustain high and stable rates of growth with minimal cyclical fluctuation when markets were permitted to clear themselves without government interference. (c) Yes—in the late 1920s, a majority of economists reported and publicized that the economy was becoming dangerously unbalanced and that a serious downturn was near. (d) Yes and no—by the late 1920s, the economics profession was about equally split on the possibility of a serious downturn in the near future.
When a firm practices perfect price discrimination,
a. The demand curve is very inelastic b. The demand curve is the marginal revenue curve c. The demand curve is very elastic d. The marginal cost curve is the average cost curve