Refer to the information provided in Figure 8.4 below to answer the question(s) that follow.
Figure 8.4 Refer to Figure 8.4. The marginal cost of the third microwave oven is
A. $50.
B. $166.67.
C. $300.
D. indeterminate from this information.
Answer: A
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Economists believe that as a saver's wealth increases, the saver will generally
A) increase his or her holdings of all assets proportionately. B) increase the fraction of wealth held as cash. C) increase the fraction of wealth held as common stock. D) decrease the fraction held as corporate bonds.
Individual investors who always want to hold gold are known as:
A) goldfinger B) golden boys C) gold bugs D) goldilocks
If the MPC is .6, the multiplier is
A. .4. B. .6. C. 1. D. 2.5.
It is assumed that the marginal benefit of consumption
A. decreases as more units of the good are consumed. B. remains constant as more units of the good are consumed. C. could either increase or decrease as more units of the good are consumed. D. increases as more units of the good are consumed.