One can determine the amount of any level of total income that is consumed by:
A. multiplying total income by the slope of the consumption schedule.
B. multiplying total income by the APC.
C. subtracting the MPS from total income.
D. multiplying total income by the MPC.
B. multiplying total income by the APC.
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Canned milk was only rationed to babies and small children during World War II. This rationing was an example of allocation by
A) market price. B) first-come, first-served. C) sharing equally. D) force. E) personal characteristics.
One of the commonly used assumptions in deriving the Heckscher-Ohlin model is that tastes are homothetic, or that if the per capita incomes were the same in two countries, the proportions of their expenditures allocated to each product would be the
same as it is in the other country. Imagine that this assumption is false, and that in fact, the tastes in each country are strongly biased in favor of the product in which it has a comparative advantage. How would this affect the relationship between relative factor abundance between the two countries, and the nature (factor-intensity) of the product each exports? What if the taste bias favored the imported good?
A monopolist that charges different prices to different buyers based on their elasticizes of demand is practicing
a. first degree price discrimination. b. second degree price discrimination. c. third degree price discrimination. d. predatory pricing.
Which of the following government programs provides recipients with in-kind benefits?
a. Temporary Assistance to Needy Families (TANF). b. Social Security. c. The food stamp program (SNAP). d. Unemployment compensation.