Assume that consumption in the United States is $9,000 billion in 2009. If the MPC is 0.8 and disposable income increases by $1,000 billion in 2010, then the level of consumption in 2010 will be
A. $10,000 billion.
B. $9,800 billion.
C. $9,000 billion.
D. $7,200 billion.
Answer: B
You might also like to view...
A movement downward toward the right along a typical production possibilities curve represents
a. decreasing production of both goods under consideration. b. increasing production of both goods under consideration. c. increasing production of one good and decreasing production of the other. d. increasing production of one good with no change in production of the other.
The labor demand curve:
A. is provided by firms who want to hire workers at each given wage. B. is made up of workers who want to work for firms at each given wage. C. shows number of workers who are willing and able to work at higher wages. D. shows that the number of people who want to work increases as the wage increases.
Sonya lives in a country where most companies are free to produce and sell whatever they want. However, the government regulates prices for utilities and healthcare, and restricts unfair sales practices and manufacturing processes that harm the environment. Which type of economy does Sonya’s country have?
a. traditional b. command c. market d. mixed
International trade
A) harms consumers but helps exporting firms. B) helps consumers but harms exporting firms and their workers. C) helps consumers but hurts firms that are less efficient than their foreign competitors. D) helps consumers and firms that compete with their foreign competitors.