If the MPC is .80, then a change in disposable income of $60 billion will lead to an initial change in consumption of
a. $30 billion.
b. $42 billion.
c. $48 billion.
d. $60 billion.
e. $70 billion.
c
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Refer to the below graph of the market for low-skilled labor. Sd is the supply of domestic resident workers, and St is the total supply of labor including undocumented workers. What is the equilibrium wage rate and equilibrium employment if there were no illegal immigration?
A. $14 and 142M, respectively
B. $13 and 135M, respectively
C. $14 and 120M, respectively
D. $17 and 135M, respectively
Why does it make sense for economies to specialize according to comparative advantage and trade?
What will be an ideal response?
Is the federal government budget today in surplus or deficit?
What will be an ideal response?
On a vacation to China, you find yourself eating every meal at the local Burger King rather than buying a meal from one of the street vendors. Your traveling companion claims that you are irrational, since you never eat Burger King hamburgers when you are home, and Burger King's hamburgers cost more than the meals prepared and sold by China's street vendors. An economist would most likely explain
your behavior by suggesting that a. your behavior is rational, but your friend's behavior is clearly irrational. b. you are clearly irrational, but your friend's behavior is rational. c. the Burger King brand name suggests consistent quality. d. the advertising by Burger King in China is more persuasive than the advertising by Burger King in your home town.