If the marginal propensity to consume decreases, the marginal propensity to save decreases
a. True
b. False
Indicate whether the statement is true or false
False
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Which factor of production earns the highest percentage of total U.S. in-come? Define that factor of production. What is the income earned by this factor of production called?
What will be an ideal response?
The circular flow model illustrates:
A. The importance of having a central plan for the economy B. How natural and other resources are created C. How money is created by the banking system D. The interdependence of businesses and consumers
Full-employment GDP is also known as
A) realized GDP. B) potential GDP. C) politico-economic GDP. D) balanced-budget GDP.
The difference between current market price and full costs of production for the firm is known as
A. producer surplus. B. consumer surplus. C. nonprice surplus. D. market surplus.