Which of the following do the marginal propensity to consume and the marginal propensity to save have in common?
a. They contradict Keynes’s original model.
b. They apply only to certain household consumers.
c. It is impossible for either to be zero.
d. They both require change in disposable income to calculate.
d. They both require change in disposable income to calculate.
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Which of the following is true ofthe Food, Conservation, and Energy Act of 2008?
a. It continued the subsidies tied to farm prices that comprised the major share of transfers to farmers. b. The act provided support for the development of bio-fuelsintended to supplement gasoline for automobiles.c. It continued large subsidies to American farmers, which makes the US very different from most industrialized nations, which offer few agricultural subsidies and whose farmers operatein a competitive market. d. It drastically reduced both direct subsidies and subsidies tied to farm prices.
Compared to ideal economic efficiency, when the production of a good generates external costs, competitive markets will result in an output that is too:
a. large and a price that is too high. b. large and a price that is too low. c. small and a price that is too high. d. small and a price that is too low.
Which of the following would, other things equal, increase the demand for U.S. farm products?
A. Poorer crops abroad. B. Appreciation of the U.S. dollar. C. Deteriorating trade relations with China and Russia. D. Increases in foreign tariffs on imported farm products.
What does it mean when the products sold by the firms in an industry are homogeneous?
A) The product sold by one firm is a perfect substitute of the product sold by another firm in the same industry. B) Firms in the industry can produce the same product with different inputs. C) All firms in the industry are identical in size. D) The product sold by one firm is a perfect complement of the product sold by another firm in the same industry.