In the above table, the average propensity to save when disposable income is $5,000 is
A) -0.1. B) 0.1. C) 0.0. D) 0.2.
C
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If the government decreases its purchases of goods and services by $12,000 and the MPS is 0.5, GDP and income will eventually decrease by:
A. $2,400. B. $6,000. C. $24,000. D. $60,000.
Total planned expenditures in a closed economy are equal to
A. investment + saving + transfers. B. consumption + savings + transfers + investment. C. consumption + investment + government expenditures. D. saving + investment + government expenditures.
Suppose the cost of producing two goods, x and y, can be represented as C = ax + by + cxy. If there are diseconomies of scope, then which of the following must be TRUE?
A) a = b B) a + b = -c C) c > 0 D) c < 0
If price were set by the government at $3, there would be a price _____________, that would cause a ___________ of _______ units.
A. floor; surplus; 12
B. floor; shortage; 12
C. ceiling; surplus; 14
D. ceiling; shortage; 14