The marginal propensity to consume:
A. is the amount by which consumption increases when after-tax income increases by $1.
B. is closely linked to the multiplier effect of government spending.
C. is a value between 0 and 1.
D. All of these are true.
D. All of these are true.
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Refer to Figure 5-1. At the efficient equilibrium,
A) economic surplus is minimized. B) economic surplus is maximized. C) economic surplus is zero. D) economic surplus is negative.
Refer to Table 11-3. Use the table above to calculate the annual growth rate in GDP. Also calculate the total percentage change in the growth from 2013 through 2016
Explain the difference between the average annual growth rate in real per capita GDP from 2013 through 2016 and the total percentage change in growth from 2013 and 2016.
Which of the following makes up the balance on current account?
a. The capital account, the merchandise trade balance, and net investment income from abroad. b. The balance on goods and services, net investment income from abroad, and net unilateral transfers abroad. c. The merchandise trade balance, net unilateral transfers abroad, and capital inflows. d. The balance on goods and services plus capital outflows minus net unilateral transfers abroad.
If a firm's total costs are $100 when 10 units of output are produced and $103 when 11 units of output are produced, the marginal cost of the 11th unit is
A. $1. B. $3. C. $5. D. $9.36.