Refer to the table. The after-tax MPC in the economy shown is:
A. .5.
B. .67.
C. .75.
D. .8.
B. .67.
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As the economy nears the end of an expansion, which of the following do we typically see?
A) falling wages relative to output prices B) rising interest rates C) rising firm profits D) rising levels of firm investment
The demand for pizzas in a large town is written as:
Qd = 120 - 10P + 5Pb - 0.5Ps - 10Y, where Qd is the quantity demanded, P is the price, Pb is the price of burritos, Ps is the price of soft drinks sold in the pizza restaurants, and Y is personal income per month (in thousand dollars). If there is a $1,000 increase in personal income, how will the Qd change? A) increase by 10 B) decrease by 10 C) unchanged D) not enough information provided
Gross Domestic Product is best defined as
A. the total market value of all final goods and services that exist in an economy at a given point in time. B. the total market value of all intermediate goods and services produced during a year by factors of production located within a nation's borders. C. the value added to all goods produced in an economy during a year. D. the total market value of all final goods and services produced during a year by factors of production located within a nation's borders.
When ________ scale of production leads to ________ average costs, an industry exhibits decreasing returns to scale.
A. decreased; higher B. increased; higher C. increased; unchanging D. increased; lower