Figure 4.3 illustrates the demand for tacos. If people expect the price of tacos to decrease in the near future, this would most likely bring about a movement from:

A. point a to point b.
B. point c to point a.
C. D2 to D0.
D. D0 to D1.

Answer: C

Economics

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If the consumption function is defined as C = 5,500 + 0.9Y, what is the marginal propensity to consume?

A) 0.1 B) 0.9 C) 5.5 D) 6.1

Economics

During the past decade, India has invested about 22% of its GDP while China's investment rate has been double that of India's. India's annual growth rate has been about 6% while that of China has been about 9%. What conclusions can you draw?

What will be an ideal response?

Economics