If the consumption function is defined as C = 5,500 + 0.9Y, what is the marginal propensity to consume?
A) 0.1
B) 0.9
C) 5.5
D) 6.1
B
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The demand by sterile couples for babies to adopt has grown rapidly, while the supply has dwindled because of improved contraception, liberal abortion laws, and an increase in the probability that unwed mothers will keep their children. It violates the law to sell human beings at any age, but for every 20 legal adoptions, there seemingly is one baby sale at a price up to $50,000. The generic term economists apply to the market produced by this type of shortage is
A. “black market.” B. “white slave market.” C. “the adoption market.” D. “baby market.”
Answer the following statements true (T) or false (F)
1. The U.S. economy is a mixture of perfect and imperfect competition and regulated and non regulated industries. 2. Self -interest is a major tenet of economic liberalism. 3. Laissez-faire is a policy of government nonintervention in the economy. 4. Laissez-faire is a policy of no government intervention in the economic activities of individuals and businesses.
Globo Public Supply has $1,000,000 in assets. Its demand curve is: P = 206 - .20•Q and its total cost function is: TC = 20,000 + 6•Q where TC excludes the cost of capital. If Globo Public Supply is UNREGULATED, find Globo's optimal price
a. $206 b. $106 c. $56 d. $6 e. $3
An increase in economic rent is simply a transfer from the buyer to the seller without any change in quantity. Identify the underlying assumption
a. Quantity supplied remains unchanged even when economic rent increases. b. Quantity supplied is positively related to economic rent. c. The relation between quantity supplied and economic rent is indeterminate for nonrenewable resources. d. Bargaining power of buyers is greater than sellers. e. Consumer surplus is a positive function of economic rent.