Refer to the information provided in Figure 24.1 below to answer the question(s) that follow.
Figure 24.1Refer to Figure 24.1. The MPC in this economy is
A. 0.4.
B. 0.5.
C. 0.6.
D. cannot be determined from the given information.
Answer: B
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If government were to issue a fixed number of licenses to produce a good or provide a service, this would likely:
A. increase the wage received by those who have licenses. B. lower the wage received by those who have licenses. C. lower the price of the good or service to consumers. D. increase the demand for goods.
Household investment choices need to be balanced between the expected return and the degree of risk involved. There is also the question of liquidity, which means how quickly you can convert the asset back into cash. Which of the following represents an investment with medium return, high risk, and low liquidity?
a. Precious metals b. House c. Mutual funds d. Savings account
Any increase in efficiency increases output available for distribution
a. True b. False Indicate whether the statement is true or false
An individual faces two alternatives for an investment: Asset A has the following probability return schedule:Probability of returnReturn (Yield) %.2511.0.2010.5.209.5.159.0.106.5.10-1.0Asset B has a certain return of 8.0%. If the individual selects asset A does she violate the principle of risk aversion? Explain.
What will be an ideal response?