The change in saving divided by the change in income is the:
A. marginal propensity to save.
B. saving function.
C. average propensity to save.
D. extra propensity to save.
Answer: A
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Suppose Aiyanna's Pizzeria currently faces a linear demand curve and is charging a very high price per pizza and doing very little business. Aiyanna now decides to lower pizza prices by 5% per week for an indefinite period of time. We can expect that each successive week
A. demand will become less price elastic. B. the elasticity of supply will increase. C. price elasticity of demand will not change as price is lowered. D. demand will become more price elastic.
Brandon finds that Max Solutions can supply computers with the specific configuration he needs. His company enters into a contract with Max Solutions to provide 60 custom-built desktops at an agreed price. The contract between them will ensure each of the following, EXCEPT:
a. that Brandon's company does not back out and make a deal with someone else for a lower price. b. Max Solutions does not sell the computers to another company for a higher price. c. Max Solutions supplies the computers before the scheduled date of delivery. d. Brandon's company compensates Max Solutions in case of cancellation of order at a later date.
In an ideal labor market, wages would adjust to balance the quantity of labor supplied and the quantity of labor demanded, ensuring that all workers are always fully employed
a. True b. False Indicate whether the statement is true or false
If two bundles are on the same indifference curve, then
A) the consumer derives the same level of utility from each. B) the consumer derives the same level of ordinal utility from each but not the same level of cardinal utility. C) no comparison can be made between the two bundles since utility cannot really be measured. D) B and C.