Use the following consumption schedule to answer the next question. 
The marginal propensity to consume is represented by
A. GE/AB.
B. EF/BE.
C. GF/BE.
D. DE/AB.
Answer: A
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A) Personal household consumption B) Planned household investment C) Household income D) Household wealth
For a normal good, the income elasticity of demand is:
A) positive or negative depending on the share of income accounted for by the good. B) always equal to 1. C) positive if income increases and negative when income declines. D) always positive.
"Second-hand" smoke, an often cited disadvantage of allowing smoking in restaurants, is referred to in economics as a(n)
A) capital good. B) externality. C) economic cost. D) negative investment.
A firm's marginal revenue product of labor curve is also
A) its labor demand curve. B) its marginal cost curve. C) its total revenue line. D) its long-run input cost function.