If the savings rate in an economy is 30%, and the level of investment in the economy is $400, the GDP of the economy must be:
A) $1,900.25. B) $1,111.22. C) $1,333.33. D) $1,750.50.
C
You might also like to view...
Suppose that a perfectly competitive industry becomes a monopoly. What effect will this have on consumer surplus, producer surplus, and deadweight loss?
What will be an ideal response?
Fixed costs are
a. costs that vary with output b. always equal to marginal costs c. costs that do not vary with output d. equal to total costs
Which of the following is an example of an externality?
a. Drug abuse affecting David's health. b. Sara taking a break from work. c. A transaction between two parties, affecting them alone. d. Tom's smoking affecting his roommate's health.
Which of the following is true?
a. Human choice is generally not influenced by changes in incentives. b. What is true for the individual must be true for the group as a whole. c. Using scarce resources to meet one need reduces our ability to meet needs in other areas. d. The economic way of thinking stresses that good intentions usually lead to sound economic policy.