When a person's consumption goes from $8,000 to $12,000 when her disposable income goes from $10,000 to $20,000, her MPC equals:
a. 0.4
b. 0.6.
c. 0.75.
d. 0.8.
a
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The central problem of every economic system is to
A) to transform mere wants into genuine needs. B) get people to cooperate effectively in using what is available to provide what is wanted. C) get people to see that what is available is all that is necessary. D) increase the number of jobs available. E) redistribute income fairly.
While net domestic product (NDP) is theoretically a better measure of economic activity than gross domestic product (GDP), GDP is used more frequently because:
A. net exports, which are included in NDP but not GDP, are difficult to measure. B. consumption, which is included in NDP but not GDP, is difficult to measure. C. investment, which is included in NDP but not GDP, is difficult to measure. D. depreciation, which is included in NDP but not GDP, is difficult to measure.
The objective of rent controls is to
A. encourage the construction of new rental units. B. ensure an adequate supply of rental housing for the poor. C. keep rents below levels that would be observed in a freely competitive market. D. raise revenue for the local government.
For the United States, U.S. direct foreign investment abroad is more significant than foreign investment in U.S. securities and currency
Indicate whether the statement is true or false