When economists use the terms "supply" and "demand," they are referring to
A) the roles economists must take to improve the economy.
B) the plans and ongoing negotiations among individual traders in the market process.
C) the ways people meet their needs in society.
D) the supply of money and the demand for money.
E) the supply of laws and the demand for laws in a well-governed society.
B
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If the multiplier is 10, then the marginal propensity to consume (MPC) is
A) 9. B) 1. C) 0.9. D) 0.1.
Suppose two coffee snobs who must have their coffee and cream in exact proportions (each cup is 10 coffee per 1 unit cream) are invited to a weekend long event (during which they can easily consume 8 cups of coffee). Suppose Snob A is given 8 units of cream and Snob B is given 80 units of coffee. The post trading result (one in which any trade that makes both parties better off than their initial
allocation) will guarantee each person a. nothing b. at least 1 cup of properly made coffee. c. at least 2 cups of properly made coffee. d. exactly 4 cups of properly made coffee.