Answer the following statements true (T) or false (F)
1) If DI is $275 billion and the APC is 0.8, we can conclude that saving is $55 billion.
2) If the MPC is constant at various levels of income, then the APC must also be constant at all
of those income levels.
3) The average propensity to consume is defined as income divided by consumption.
4) 1 - MPC = MPS.
5) If the Hennige family's marginal propensity to consume is .70, then it will necessarily consume
seven-tenths of its total income.
1) T
2) F
3) F
4) T
5) F
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If the price of chicken falls, then in the market for beef
A) the demand curve for beef shifts rightward. B) the demand curve for beef shifts leftward. C) there is a movement downward along the demand curve for beef. D) there is a movement upward along the demand curve for beef.
The political wisdom of choosing a tariff acceptable to the median U.S. voter is
A) a good example of the principle of the second best. B) a good example of the way in which actual tariff policies are determined. C) a good example of the principle of political negotiation. D) not evident in actual tariff determination. E) usually evident in actual tariff determination.