If the level of consumption is $100 billion and disposable income is $125 billion, then the
A) APC = 0.6 and saving is positive.
B) APC = 0.8 and saving is negative.
C) APC = 0.8 and saving is positive.
D) APC = 0.6 and saving is negative.
Answer: C) APC = 0.8 and saving is positive.
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Economist Kenneth Arrow has shown mathematically that no system of voting will consistently represent the underlying preferences of voters. This finding is called
A) Arrow's median voter model. B) Arrow's Amendment to the public choice model. C) Arrow's majority vote paradox. D) the Arrow impossibility theorem.
One of the major political developments of the past several decades is the growing size and economic/monetary integration of the European Union. What effect do you think this will have on international trade between countries?
What will be an ideal response?
The only disease-specific group eligible for Medicare are those suffering from AIDS
a. end-stage renal disease. b. advanced coronary artery disease. c. metastasized cancer. d. diabetes
Explain how the market supply curve is derived in a perfectly competitive market. Identify five factors that would cause the market supply curve to shift.
What will be an ideal response?