Refer to the given data. At an income level of $400 billion, the average propensity to save in economy (2) is:
Answer the question on the basis of the following consumption schedules. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars.
A. .9125.
B. .0725.
C. .0875.
D. .9305.
C. .0875.
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Just like a monopolist, a monopolistically competitive firm:
A. cannot sell additional units of output without lowering the price. B. is a price taker. C. sets the price according to marginal revenue and marginal cost; the demand curve doesn't matter. D. faces a perfectly elastic demand curve.
Which of the following contributes to income inequality?
a. unequal abilities b. unequal ownership of property c. discrimination d. All of these.
An increase in aggregate demand will tend to cause which of the following?
A. a recessionary gap B. cost-push inflation C. a deflationary gap D. none of these
Suppose you were to hear a politician defend the minimum wage on the grounds that it would not cause that much unemployment because firms have to hire a certain number of workers, you would know this person to be relying on the ________ argument.
A. consumer and producer surplus B. elasticity C. macroeconomic D. work effort