If the marginal propensity to consume is 0.8, the marginal propensity to save is:
a. 0.8
b. 0.4
c. 0.2
d. 0.3
c
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In the Cobb-Douglas production function, the index of the overall level of efficiency of transforming capital and labor into real GDP is called
A) total factor productivity. B) allocative efficiency. C) the marginal efficiency index. D) the transformation allocation of inputs.
What is the underground economy? How does it affect GDP calculations? Provide three examples of underground economy transactions
On a graph showing the influence of automatic stabilizers on the economy, government expenditures on transfer payments and real GDP have a(n):
A. direct relationship as shown by an upward-sloping line G. B. direct relationship as shown by a downward-sloping line G. C. inverse relationship as shown by an upward-sloping line G. D. inverse relationship as shown by a downward-sloping line G.
If average total cost is $50 and average fixed cost is $15 when output is 20 units, then the firm's total variable cost at that level of output is
A) $1,000. B) $700. C) $300. D) impossible to determine without additional information.