If Earl received an $800 bonus and his MPS is 0.25, his consumption rises by $________ and his saving rises by $________.
A. 400; 250
B. 825; 125
C. 800; 250
D. 600; 200
Answer: D
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You and I both have homothetic tastes. When the price of peaches goes up, you buy more strawberries and I buy fewer. Which of the following must be true.
A. Peaches are more substitutable with strawberries for me than they are for you. B. Peaches are more substitutable with strawberries for you than they are for me. C. Strawberries are normal goods for you and inferior goods for me. D. Strawberries are normal goods for me and inferior goods for you. E. Both (a) and (c). F. Both (b) and (c). G. Both (a) and (d) H. Both (b) and (d)
Which of the following nations had the lowest growth rate between 1960 and 2011?
A) Taiwan B) Chile C) Ethiopia D) South Korea
As a function of real GDP (real GDP being measured on the horizontal axis), autonomous investment is represented by a(n):
a. U-shaped curve. b. vertical line. c. positively sloped line. d. negatively sloped line. e. horizontal line.
Economists disagree on whether labor taxes cause small or large deadweight losses. This disagreement arises primarily because economists hold different views about
a. the size of labor taxes. b. the importance of labor taxes imposed by the federal government relative to the importance of labor taxes imposed by the various states. c. the elasticity of labor supply. d. the elasticity of labor demand.