If Melanie had $200,000 of income and spent $180,000 on consumption in 2010 and had $300,000 of income and spent $240,000 on consumption in 2011:
a. her APC in 2010 was 0.8.
b. her APC in 2011 was 0.9.
c. her MPC was 0.6
d. her MPC was 0.8.
c
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In the circular flow diagram, which of the following is true in resource or factor markets?
(a) Households buy resources from business firms. (b) Households sell products to business firms. (c) Households sell resources to business firms. (d) Business firms and households resources are unlimited.
Refer to the accompanying table. If the price of Good A is $5 and the price of Good B is $4, then the rational spending rule is satisfied when the consumer purchases ________ units of Good A and ________ units of Good B.UnitsMarginal Utilityof Good AMarginal Utilityof Good B1304022733315244814
A. 4; 2 B. 3; 3 C. 3; 2 D. 1; 3
Refer to the data. At $20 million of R&D expenditures, the:
A. marginal cost of R&D exceeds the marginal benefit.
B. expected total return from R&D is at a maximum.
C. interest-rate cost of funds is negative.
D. marginal benefit of R&D exceeds the marginal cost.
The United States has more income inequality than Japan, Germany, and France
a. True b. False Indicate whether the statement is true or false