Spending on new capital goods, new homes, and the addition of unsold goods to company inventories is included in:
A. service spending.
B. investment spending.
C. government purchases.
D. consumption expenditures.
Answer: B
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When Joe's disposable income is $50,000, his consumption expenditure is $45,000, and when his disposable income is $60,000, his consumption expenditure is $53,000. Joe's marginal propensity to consume is
A) 100. B) 1.25 C) 80. D) 0.80. E) $8,000.
If GDP grew 3% in 1970, 2.2% in 1971 and 2.5% in 1972 then, what is the average annual growth rate over this period?
A) 5% B) 4% C) 2.6% D) -2.2%
Contrast the economic experience of the HPAE with the experience in Latin America, especially with regard to the 1980s and in terms of weathering financial crises
What will be an ideal response?
A perfectly competitive industry consists of firms that produce ________ products.
A. unique B. slightly differentiated C. identical D. significantly differentiated