The government of Marina imposes a tax on alcoholic beverages because of the increasing costs of sending first responders to accidents that are caused by drunk driving. This is an example of a _____

A hypothetical open economy has a marginal propensity to import (MPI) equal to 0.2 and a marginal propensity to consume equal to 0.7 . Assume that the economy is initially in equilibrium. What is the marginal propensity to save of this economy?

a. 0.2 b. 0.3 c. 0.7 d. 0.9 e. 0.6

In a market, the marginal buyer is the buyer

a. whose willingness to pay is higher than that of all other buyers and potential buyers. b. whose willingness to pay is lower than that of all other buyers and potential buyers. c. who is willing to buy exactly one unit of the good. d. who would be the first to leave the market if the price were any higher.