The sum of the marginal propensity to consume (MPC) and the marginal propensity to save (MPS) is
A) equal to one. B) greater than one. C) negative. D) less than one.
A
You might also like to view...
Purchasing power parity prices are used to construct GDP data that
A) do not omit the underground economy. B) can be used to make more valid comparisons between one country and another. C) is a proper measure of economic welfare. D) adjust for differences in population.
If workers and firms raise their inflation expectations,
A) unemployment will fall. B) the short-run Phillips curve will be vertical. C) the short-run Phillips curve will shift upward. D) actual inflation will fall to match expected inflation.
Suppose the seller's opportunity cost of producing shirts is $12 and the buyer's valuation is $22 . If the seller gains $2 more than the buyer from this transaction, what is the price at which the good is exchanged between the two parties?
a. $17 b. $18 c. $19 d. $20
The loss minimization point for a firm is
A. when at the minimum point on the average total cost curve. B. when at the minimum point on the average variable cost curve. C. where marginal cost equals marginal revenue. D. when total revenue is maximized.