When you pay for items that are consumed immediately or wear out quickly by financing them with your credit card, your wealth
A) decreases.
B) is non-taxable.
C) expands.
D) is saved for future use.
A) decreases.
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If your income increases from $33,000 to $41,000 and your consumption increases from $8,000 to $12,000 . your marginal propensity to consume (MPC) is:
a. 0.2. b. 0.4. c. 0.5. d. 0.8. e. 1.0.
Informal game theory:
A. shows how the Nash equilibrium is reached. B. relies on deductive logic. C. assumes people calculate their optimal strategy. D. considers how people actually think and behave.
A computer you are considering for your business would add $4,000 per year to your profit. It would cost $400 a year to buy a complete maintenance contract so that you would never have repair and upkeep expense. The obsolescence depreciation is 25% a year. The going market interest rate is 5%. Assume all costs and revenue occur at the end of the year. What is the maximum you should be willing to pay for the machine?
What will be an ideal response?
The cost or benefit of a market activity borne by a third party is
A. A monopoly. B. An externality. C. A government directive. D. Black-market economic activity.