Currently, which sector of the economy is consistently a net saver?
A) the household sector
B) the business sector
C) the federal government
D) the foreign sector
A
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If national income is $100 billion, and MPC = 0.75, then autonomous consumption is ________ and MPS is ___________
a. $25 billion; 0.25 b. $75 billion; 0.75 c. unknown; 1.25 d. unknown; 0.25 e. $75 billion; 0.25
You have just bought a used car, and drive away satisfied that you've made a good deal on the purchase. What would an economist say about your "gain" on the deal?
a. Your gain has clearly meant that the seller lost on the deal. b. The seller has clearly gained, and you have actually lost on the deal. c. Both you and the seller have gained something. d. If your gain is too large, then the deal should be re-negotiated. e. If the seller's loss is too large, then the deal should be re-negotiated.
Which of the following has a present value of $100?
a. $109.12 in two years when the interest rate is 4 percent b. $113.98 in two years when the interest rate is 6 percent c. $116.64 in two years when the interest rate is 8 percent d. $123.17 in two years when the interest rate is 10 percent
What is the opportunity cost of moving from point A to point B?
