Refer to Table 23-4. Given the consumption schedule in the table above, the marginal propensity to consume is
A) 0.5. B) 0.6. C) 0.75. D) 0.8.
Ques. 2The most important factor contributing to wage differences in the labor market is differences in the level of education and training among workers.
Indicate whether the statement is true or false
Ques. 3Which of the following firms is most likely to use cost-plus pricing?
A) A firm that makes many products but has a small research and development budget, the cost of which can be easily assigned to the different product lines.
B) A firm that sells one product and has a sizable research and development budget.
C) A firm that makes several products and has a sizable research and development budget, the cost of which cannot be easily assigned to each product.
D) A firm that makes one product.
Ques. 4What is meant by tax incidence?
What will be an ideal response?
Ques. 5What action should the Fed take if it wants to move from a point on the short-run Phillips curve representing low unemployment and high inflation to a point representing higher unemployment and lower inflation?
What will be an ideal response?
Ques. 6If technological change occurs in the economy
A) we will move up along the long-run aggregate supply curve.
B) we will move down along the long-run aggregate supply curve.
C) the long-run aggregate supply curve will shift to the right.
D) the long-run aggregate supply curve will shift to the left.
Ques. 7________ is defined as national income + transfers - taxes.
A) Disposable income B) Personal income
C) GDP D) Gross private domestic investment
Quick Reply
