The incidence of the tax between buyers and sellers depends only on the elasticity of demand

Mathematically, the value of the spending multiplier in terms of the marginal propensity to consume (MPC) is given by the formula:

a. MPC ? 1. b. (MPC ?1) / MPC. c. 1 / MPC. d. 1 / (1 ? MPC).

If a student enrolls in an additional course at the university, an economist would conclude that: a. the total benefit that the student expects to receive as a result of completing her college degree exceeds the total cost of her college education. b. the student is not following the rule of rational choice

c. the student must not be involved in extracurricular campus activities. d. the expected marginal benefit of an additional course must exceed the expected marginal cost of the course.