In year one, Adam earns $1,000 and saves $100. In year 2, Adam gets a $500 raise so that he earns a total of $1,500. Out of that $1,500, he saves $200. What is Adam's MPC out of his $500 raise?
What will be an ideal response?
.8
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The leadership of unions must recognize that they face
A) an economic system that is hostile to the interests of workers. B) a no-win situation whenever they think a strike is necessary. C) a fundamental trade-off between higher wages for members and higher taxes for members. D) a fundamental trade-off between higher wages for members and fewer jobs for members.
The percentage of U.S. families below the poverty line is approximately
a. 5 percent b. 10 percent c. 25 percent d. 45 percent e. 65 percent
When a consumer is able and willing to buy a good or service, s/he creates ____________ .
a. consumption b. demand c. elasticity d. allocation
The general formula used for calculating the net national loss from a trade barrier as a percentage of gross domestic product (GDP) may fail to account for
A. the rent-seeking costs of local firms. B. the production effect of the trade barrier. C. the government revenue generated from the trade barrier. D. the consumption effect of the trade barrier.