Refer to Table C_6. Assuming MPC=0.75, the break-even level of disposable income=____. (Do not enter a $ sign. Include a negative sign, if a negative number)

________ increases households' saving

A) A decrease in the real interest rate B) A tax cut that increases disposable income C) Higher expected future income D) A stock market boom that increases the purchasing power of households' wealth

How would the elimination of a sales tax affect the market for a product that had been subject to the tax?

A) The equilibrium price for the product would fall by less than the amount of the tax. B) The reduction in government revenue from the tax would be made up by an increase in property taxes. C) The supply of the product would become more elastic. D) The demand for the product would rise and the equilibrium price would fall by the amount of the tax.

Per capita real GDP is a questionable indicator of the state of the economy because it does not account for:

a. growth of national income. b. changes in inflation. c. income distribution. d. changes in the size of the population. e. changes in the level of output.

Typically, an individual takes only one newspaper from the bin because

A) of the low marginal utility of additional newspapers. B) total utility will rise with consumption of more than one newspaper. C) marginal utility increases with the first consumption of newspapers. D) there are limited amounts of newspapers in the bin.