If the marginal propensity to consume is 0.8, every $10 increase in disposable income increases
a) consumption expenditure by $0.80
b) consumption expenditure by $80
c) saving by $0.20
d) consumption expenditure by $8
d) consumption expenditure by $8
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The stock of wealth increases more rapidly the faster the flow of ________.
A. saving B. money C. income D. assets
Let the production function be q = ALaKb. Returns to scale are equal to
A) a ? b. B) a + b. C) La + Kb. D) A ? L.
Which of the following is important if a country is going to achieve and sustain high rates of economic growth?
a. investment in physical and human capital b. improvements in technology c. institutional and policy arrangements consistent with economic efficiency d. All of the above.
In public education, the value of the services provided is
A) greater than the value that parents and students place on the services.
B) equal to the value that parents and students place on the services.
C) less than the value that parents and students place on the services.
D) zero since they are a public good.