Use the table below to find the marginal propensity to save.
a. 0
b. 0.25
c. 0.5
d. 0.75
e. 0.80
The natural rate of unemployment never changes.
A difference in wage rates that results from a difference in working conditions
A government-imposed price ceiling set below the market’s equilibrium price for a good
will produce an excess supply of the good.
The basic problem of economics arises when there are unlimited resources available to
fulfill society’s limited wants.
Why do policymakers have the goal of stable prices?
a. Stables prices always keep the economy in expansion
b. Firms make too much money when prices are rising
c. Inflation is always associated with wars
d. Inflation imposes costs on society
e. Inflation is always associated with trade deficits
One kind of gain from specialization is that
Excess capacity arises when firms cannot sell all of their output at the current market
price.
If the price of ground beef falls, the demand for hamburger buns will
If 20 smoothies are sold at a market price of $5.50 each, then
If the MPC is 0.8 and disposable income shrinks by $100 million. Consumption would
a. rise by $8 million
b. rise by $80 million
c. fall by $80 million
d. fall by $8 million
e. fall by $20 million
Market forces encourage discrimination in the case of