The marginal propensity to consume is
A. real saving/real disposable income.
B. real consumption/real disposable income.
C. change in real saving/change in real disposable income.
D. change in real consumption/change in real disposable income.
Answer: D
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The latest model car in the dealer's showroom has a sticker price of $35,000.00. Fred, the shopper, has decided that he would pay no more than $32,000.00 for the car
After two hours of bargaining with the saleswoman, Fred actually purchases the car for $31,000.00. Fred, therefore, has obtained a consumer surplus of A) $35,000.00. B) $32,000.00. C) $4,000.00. D) $1,000.00.
If you transfer all of your currency to your checking account, then initially, M1 will ________ and M2 will ________
A) not change; not change B) decrease; increase C) increase; not change D) not change; increase
The measured poverty rate may not reflect the true extent of economic deprivation because it does not include some forms of government assistance
a. True b. False Indicate whether the statement is true or false
Assume that the demand schedule for product C is downsloping. If the price of C falls from $2.00 to $1.75:
a. The demand for C will rise b. A smaller quantity of C will be demanded c. The demand for C will fall d. A larger quantity of C will be demanded