The marginal propensity to consume (MPC) is defined to be:
A. the change in consumption divided by the change in disposable income.
B. total income divided by total consumption.
C. total consumption divided by the change in disposable income.
D. the change in consumption divided by total disposable income.
A. the change in consumption divided by the change in disposable income.
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Firms that practice tacit collusion may receive some of the benefits of a cartel without explicitly organizing a group of firms.
Answer the following statement true (T) or false (F)
One reads the following in a newspaper: "Today the president and Congress agreed to impose new restrictive quotas on Japanese cars coming into the country." As a result, an economist would predict that the
A) supply of cars in the country will remain the same and the (average) price of cars will fall. B) supply of cars in the country will fall and the (average) price of cars will rise. C) supply of cars in the country will rise and the (average) price of cars will fall. D) demand for cars in the country will fall and the (average) price of cars will rise. E) demand for cars in the country will rise and the (average) price of cars will rise.
An increase in the marginal propensity to save from .3 to .4 will cause
A) the ZZ line to become steeper and a given change in autonomous consumption (c0 ) to have a smaller effect on output. B) the ZZ line to become steeper and a given change in autonomous consumption (c0 ) to have a larger effect on output. C) the ZZ line to become flatter and a given change in autonomous consumption (c0 )) to have a smaller effect on output. D) the ZZ line to become flatter and a given change in autonomous consumption (c0 ) to have a larger effect on output.
The merit standard refers to
A. "To each according to her need." B. "To each according to his ability." C. "To each exactly the same." D. "To each according to her productivity."