Refer to Figure 11.4. Which diagram illustrates the effect of a decrease in the marginal propensity to consume?
A) A B) B C) C D) D
B
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The number of CDs purchased increased by 50 percent when consumer income increased by 10 percent. Assuming other factors are held constant, CDs would be classified as:
a. social goods. b. normal goods. c. Giffen goods. d. inferior goods.
The wage rate considered acceptable to workers engaged in collective bargaining will be determined in part by what monetary policy workers expect in the near future
a. True b. False Indicate whether the statement is true or false
Which of the following statements is incorrect? a. Demand and supply curves for labor are constantly shifting
b. The typical unemployment compensation in the United States is one's full salary for up to 26 weeks. c. Unemployment compensation decreases the opportunity cost of being unemployed to a worker. d. Unemployment compensation encourages longer job searches, which may lead to a better match between jobs and employees.
Assume that empirical evidence shows a difference in mean earnings between two groups, say, majority and minority workers. What conclusion may be drawn?
a. The group with the lower earnings is being discriminated against. b. The group with the lower earnings is less productive. c. The group with the lower earnings has less human capital. d. Any of the above statements could, either partially or entirely, explain this difference.