In Figure 11.1, an increase in the marginal propensity to consume is represented by a change in the consumption function from

A simple macroeconomic model might explain how an increase in the demand for new housing would lead to a decrease in the rate of unemployment. In such a model, which of these variables is likely to be exogenous?

A) the quantity sold of home furnishings B) the degree of unionization of the construction industry C) the wage rate for unskilled workers D) the level of tax revenues E) the demand for concrete

Toll roads force people to pay to drive on that road. This is a solution to

A. externalities. B. opportunity costs. C. free riders. D. negative incentives.