When you receive this week's paycheck, you can either spend it or save it. The fraction of each additional dollar of disposable income that you ____ is known as your _____.
A. save; marginal propensity to invest
B. spend; marginal propensity to consume
C. invest; marginal propensity to multiply
D. pay as taxes; marginal propensity to spend
B. spend; marginal propensity to consume
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Arturo wants to start a business where he is the chief executive officer and the company does issue stock. The type of business Arturo wants to start is a
A) sole proprietorship. B) corporation. C) partnership. D) Any of the above could be correct.
The securities, such as stocks or bonds, constitute a(n) ________ for the savers and a(m) ________ for the borrowers
A) asset; liability B) debt; assets C) liability; asset D) debt or an asset; liability or an asset
When free entry is one of the attributes of a market structure, economic profits are: a. generally driven to zero in long-run equilibrium. b. generally negative for all firms
c. generally zero in the short run. d. always positive.
Adam Smith coined the term "invisible hand" to describe the process by which the actions of independent, self-interested buyers and sellers will:
A. always lead to the most efficient allocation of resources. B. often lead to increasing inequality. C. often lead to the most efficient allocation of resources. D. always lead an economy to ruin.