When John's income was low, he could not afford to dine out and would respond to a pay raise by purchasing more frozen dinners. Now that his income is high, a pay raise causes him to dine out more often and buy fewer frozen dinners
Which graph in the above figure best represents John's Engel curve for frozen dinners? A) Graph A
B) Graph B
C) Graph C
D) Graph D
A
Economics
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The entry of new firms into a market stops when:
a. the accounting profit of existing firms falls to zero. b. the general price level in the economy rises. c. the rate of interest in the economy declines. d. the economic profit of existing firms falls to zero. e. the corporate taxes are relaxed.
Economics
If equilibrium real GDP rises from $4 trillion to $6 trillion when government purchases increase by $1 trillion, the MPC must be
a. 0.8 b. 0.4 c. 0.5 d. 0.2 e. 2
Economics