In the above table, the marginal propensity to consume when disposable income changes from $7,000 to $8,000 is
A. 0.6.
B. 0.75.
C. 0.5.
D. 0.8.
Answer: D
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There is no opportunity cost of obtaining
A) a free good. B) a scarce good. C) any good a person acquires, as long as they value it highly enough. D) any good a person acquires, as long a they think it is worth the effort.
The equilibrium price is the same as the market-clearing price
a. True b. False Indicate whether the statement is true or false
Recall the Application about running a software programming business to answer the following question(s).If by starting your own software development business you are forced give up your job as a janitor, then the income you could have earned as a janitor is:
A. part of the opportunity cost of operating your software business. B. not part of the opportunity cost of operating your software business. C. part of the benefit of operating your software business. D. is an example of the principle of diminishing returns.
A firm has the following production relationship between labor and output, for a fixed capital stock.
According to the above table, what is the marginal product of the 4th unit of labor?
A. 3 B. 5 C. 6 D. 7