If a household's income falls from $20,000 to $17,000 and its consumption spending falls from $18,000 to $15,000, then its:
a. marginal propensity to consume is ?0.67.
b. marginal propensity to consume is 0.88.
c. marginal propensity to consume is 0.20.
d. marginal propensity to save is 0
e. marginal propensity to save is 0.12.
d
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One effect of the government-imposed seat belt law in the U.S. has been
a. a dramatic decrease in the number of pedestrian deaths. b. safer driving. c. an increase in the number of accidents. d. a dramatic decrease in the number of driver deaths.
If an externality is present in a market, economic efficiency may be enhanced by
a. government intervention. b. a decrease in foreign competition. c. fewer market participants. d. weaker property rights.
Inflation must be high in Moscow because it is very expensive to live there.
Answer the following statement true (T) or false (F)
An example of a(n) ________ comparative advantage is U.S. consumers buying automobiles produced in Japan because Japanese companies have a reputation for producing a higher-quality automobile than those produced in the United States.
A. subsidized B. acquired C. natural D. unwarranted