Marginal propensity to consume is the percentage of your extra disposable income that you decide to ______.
a. use to buy goods and services
b. save in an interest bearing account
c. invest in shares of stock
d. allocate to food and other necessities
a. use to buy goods and services
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Which of the following would shift the supply curve for MP3 players to the right?
A) a decrease in the number of firms that produce MP3 players B) an increase in the price of a substitute in production C) a decrease in the price of an input used to produce MP3 players D) an increase in consumer income (assuming that all MP3 players are normal goods)
Human capital is increased when a firm makes investments that raise workers' productivity.
A. True B. False C. Uncertain
Part of the deadweight loss from taxing labor earnings is that people
a. will work more. b. will be reluctant to hire accountants to file their tax returns. c. with low tax liabilities will universally be worse off than under some other tax policy. d. will work less.
Explain the principle of comparative advantage in nontechnical terms.
What will be an ideal response?