When the average propensity to save (APS) is 0.35, then this means
A. people are spending 35 percent of their disposable income and investing the remaining 65 percent.
B. people are spending 35 percent of their disposable income.
C. people are spending 65 percent of their disposable income.
D. people are saving $0.65 of the last dollar earned.
Answer: C
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An outside lag is
A) a policy aimed at increasing GDP. B) a policy aimed at reducing GDP. C) a lag in implementing policy. D) the period of time it takes for policies to work.
Briefly describe the concept of the "invisible hand."
What will be an ideal response?
A ________ is an extensive -form representation of a game
A) payoff matrix B) game tree C) Nash equilibrium D) pure strategy
Contracts are enforced by
a. the firms that make the contracts through buy-out clauses b. law firms that specialize in contract enforcement c. corporations specializing in contract writing and enforcement d. the government through the judicial system e. both households and firms through customer relations departments