Linda earned an income of $3,000 per month, which has now increased to $3,500 per month. She saves 10 percent and spends the remainder on food, lodging, and other expenses. So far, she has managed to save $20,000. What is the change in her consumption per month after the increase in income?
What will be an ideal response?
$450
You might also like to view...
Suppose you know I am only about consumption this year and consumption next year. Suppose also that I have an income this year but do not expect to have an income next year. Explain your answers. ? a. You notice that I save more after the interest rate falls. Can you tell whether "consumption now" is a normal, inferior or Giffen good? ? b. Suppose I also received an unexpected raise at work and you overhear me say: "Cool, I am even Steven. Now that I have my raise, I am just as happy as I was before the interest rate fell and I did not yet have a raise." Without knowing anything more, can you tell whether I consume more or less next year than I would have consumed had neither of the two changes happened?
What will be an ideal response?
In the early years of software development the industry had to train its own workers in developing code to build software applications. It was a very costly undertaking as software firms had to shoulder most of the training costs
However, over time the industry began to experience decreasing costs. How and why did this transformation take place?
In which regions do recessions, or economic downturns, hit the hardest?
a. Regions that produce more consumer goods. b. Regions that produce more nondurable goods. c. Regions that provide more financial services. d. Regions that produce more capital goods and rely on more housing construction.
If, in a competitive market, marginal benefit is less than marginal cost
A) the net benefit to consumers from participating in the market is less than the net benefit to producers. B) the government must force producers to raise prices in order to achieve economic efficiency. C) the output is greater than the equilibrium quantity. D) the output is less than the equilibrium quantity.