In a private closed economy, national income is $4.5 trillion and savings equals $6.4 billion. Based on this data, the marginal propensity to consume:
A. Decreases as income increases
B. Is greater than the marginal propensity to save
C. Is less than the average propensity to consume
D. Cannot be calculated from the data given
D. Cannot be calculated from the data given
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Nominal GDP is GDP in a given year
A) valued in the prices of that year. B) valued in the prices of the base year. C) adjusted for inflation. D) adjusted for anticipated inflation.
A supply curve slopes upward because
a. as more is produced, total cost of production falls. b. an increase in input prices increases supply. c. the quantity supplied of most goods and services increases over time. d. an increase in price gives producers an incentive to supply a larger quantity.
An industry that has many sellers offering slightly differentiated products is called:
A. perfectly competitive. B. monopolistic. C. oligopolistic. D. monopolistically competitive.
Which group has the highest poverty rate?
A. Non-Hispanic whites B. Blacks C. Hispanics