If the marginal propensity to save (MPS) = 0.1, then
A) the MPC = 0.9.
B) the APS = 0.1.
C) the APC = 0.9.
D) consumption equals $1,800 when income equals $2,000.
A
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Initially, the economy is at point B on Figure 10-1 above. According to the Solow model of growth, in the short run, the discovery of a cold fusion process which reduces the cost of energy by 50%, ceteris paribus, will shift the economy from ________
. A) B to H, increasing per capita output without increasing capital per capita B) B to C, increasing per capita output with increasing capital per capita C) B to C, increasing per capita output without increasing savings D) B to I, increasing output, saving and capital per capita
In 1910, the largest U.S. industry as ranked by value added was
a. machinery. b. cotton goods. c. tobacco manufactures. d. railroad cars.
Commodity products are
a. rare and expensive b. patented and licensed c. highly differentiated d. uniform or standardized e. ones without impurities
Studies of the income tax show that its burden as a percentage of income
A. remains about the same as income increases. B. rises slightly as income rises. C. initially increases and then decreases as income increases. D. decreases as income rises.