If consumption is defined as C = 4,500 + 0.75Y, then the marginal propensity to save is 0.25
Indicate whether the statement is true or false
TRUE
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Explain how the price system eliminates a surplus
What will be an ideal response?
A firm produces in a perfectly competitive market and hires labor in a perfectly competitive labor market. The firm hires four workers, the marginal product of the fourth worker is 4, and the wage rate is $40 . The firm produces 100 units of the product, which sell for a price of $10 . This firm is
a. maximizing profit when it hires four workers b. not maximizing profit and should hire more workers to increase profit c. not maximizing profit and should hire fewer workers to increase profit d. not maximizing profit when it produces 100 units of the product and should increase production to increase profit e. not maximizing profit when it produces 100 units of the product and should decrease production to increase profit
Countries with high population growth rates tend to have lower levels of educational attainment
a. True b. False Indicate whether the statement is true or false
Exhibit 14-6 Aggregate supply curve
?
In Exhibit 14-6, the economy's employment potential is fully exhausted at:
A. GDP = $1,000 billion. B. GDP = $1,100 billion. C. GDP = $1,200 billion. D. the employment potential is never fully exhausted.