The marginal propensity to consume is calculated by taking the change in ______ and dividing it by the change in ______.
a. saving; consumption spending
b. saving; disposable income
c. consumption spending; saving
d. consumption spending; disposable income
d. consumption spending; disposable income
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Nearly two out of three Americans feel that we are spending too little on welfare
Indicate whether the statement is true or false
The idea that governments can plan growth by setting industrial policies to encourage growth of certain industries:
A. is a proven method for economic growth. B. is controversial. C. has worked for the majority of countries that have tried it. D. None of these is true.
As a result of slow economic growth in 2011, many companies including Cisco Systems, Lockheed Martin, and Cracker Barrel Old Country Store cut production and employment as a result of the sluggish growth in the total amount of spending in the economy. The total amount of spending in the economy is known as
What will be an ideal response?
If competitive industry Z is making substantial economic profit, output will:
A. fall in industry Z and firms will likely leave the market. B. fall in all industries except industry Z. C. expand in industry Z as more resources will move to that industry. D. expand in industry Z, but no new firms will enter the market.