To predict the effects of a tax cut on consumption spending, economists must have some estimate of the

a. income effect.
b. substitution effect.
c. relative price effect.
d. marginal propensity to consume.

d

Economics

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What is the marginal cost of producing the third unit?

a. 60 b. 70 c. 90 d. 110

Economics

Progressive Insurance's 'Tripsense' monitors driving patterns of the people who purchase the related insurance policy. This lowers insurance costs because

a. only more reckless drivers will accept the device b. drivers will want to drive more carefully knowing they are being monitored c. drivers will believe they can now drive more recklessly d. it does not affect care in driving

Economics