If Trent's MPC is .80, this means that he will:
A. spend eight-tenths of any increase in his disposable income.
B. spend eight-tenths of any level of disposable income.
C. break even when his disposable income is $8,000.
D. save two-tenths of any level of disposable income.
A. spend eight-tenths of any increase in his disposable income.
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When economist make normative statements they are?
a. speaking as scientists. b. speaking as policy advisers. c. making claims about how the world is. d. revealing that they are very liberal in their views of how the world works.
After purchasing a coffee cup from your local gas station for $5.00, you can always refill your cup for $0.50. The sunk cost of the coffee purchased at the gas station is:
A. $5.00. B. $10.00. C. $5.50. D. $0.50.
Explain the relationship between marginal cost and average variable cost
What will be an ideal response?
If the multiplier is 5, the marginal propensity to consume must be 0.8
Indicate whether the statement is true or false