Which of the following is negative for the "typical" consumer at some level of real disposable income?
A) average propensity to consume B) marginal propensity to save
C) average propensity to save D) marginal propensity to consume
C
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The former Soviet Union was known for black markets. An explanation for the existence of these illegal markets is that:
a. goods were not subject to price controls. b. the government imposed a price ceiling below the equilibrium price. c. the government imposed a price ceiling above the equilibrium price. d. all of these.
If the price elasticity of demand for a good is 0.45, it is most likely that the good
a. has many close substitutes b. is a luxury good c. is high-priced d. is a complementary good e. has a demand curve that is price inelastic
The main distinction between loanable funds and capital equipment is that
a. capital equipment has a measurable productivity, while loanable funds do not b. capital equipment is less divisible and unalterable in the short run c. loanable funds have an associated price (the interest rate), while capital equipment does not d. capital equipment may earn rents in production, while loanable funds do not e. there are no opportunity costs associated with the investment in capital equipment
If the opportunity cost of producing a good domestically exceeds the opportunity cost of purchasing it on the world market, a country can gain by
A. decreasing production and increasing imports. B. increasing production and decreasing imports. C. decreasing production and increasing exports. D. increasing production and decreasing exports.