Suppose that after disposable income increases by $500 billion, consumption expenditures increase by $450 billion. Therefore, the marginal propensity to consume would be

Which one of the following is not a possible limitation of using the Coase theorem to guide environmental policy?

a. The free rider effect b. Poor communities are likely to bear a high proportion of environmental costs c. Voluntary transactions cannot protect the environment d. Transactions costs are likely to be high when many parties are involved

This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.According to the graph shown, if this economy were to open to trade, surplus would do all of the following except:

A. transfer from producer to consumer. B. increase overall. C. decrease for the producer. D. create deadweight loss of CEFG.