Suppose consumption is $7,500 when income is $4,000 and the MPS equals 0.4. When income increases to $6,000, consumption is
A. $8,050.
B. $8,300.
C. $8,700.
D. $9,500.
Answer: C
You might also like to view...
In a logarithmic scale ________
A) the ratio of capital to labor is constant B) the vertical axis lies along the horizontal axis C) equal distances reflect the same percentage change D) values along the vertical axis correspond to the square root of values along the horizontal axis
Inspired by the beautiful private tennis courts of some of its residents, the town of Lakeland built a pristine tennis park with five courts. Within three years the nets had been torn down, trash was piled everywhere, and graffiti was written on the courts. This story demonstrates the concept of the ______.
a. lemon problem b. tragedy of the commons c. moral hazard d. adverse selection
What does it mean to say that an asset is "liquid"?
What will be an ideal response?
Firms that offer to pay for college tuition for their employees are investing in ________ capital.
A. tangible B. social C. productive D. human