Which of the following is negative for the "typical" consumer at some level of real disposable income?
A) average propensity to consume B) marginal propensity to save
C) average propensity to save D) marginal propensity to consume
C
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The United States imports cheese from a variety of countries. The table above gives the domestic supply of, and demand for, cheese in the United States. The world price of cheese is $12 per pound, and trade is unrestricted
a. How many pounds of cheese are consumed in the United States? b. How many pounds of cheese are produced in the United States? c. How many pounds of cheese are imported into the United States? If a $3 per pound tariff is imposed, d. How many pounds of cheese are consumed in the United States? e. How many pounds of cheese are produced in the United States? f. How many pounds of cheese are imported into the United States? g. How much will the U.S. government collect in tariff revenue? h. Who benefits from the tariff? Who loses?
Compared to the distribution of money income, the distribution of income that takes into consideration the effects of taxes and in-kind benefits
a. is less even b. is the same c. is more even d. is fairer e. is less fair