The marginal propensity to save (MPS) is
A) the rate at which real savings changes over time.
B) the percentage of real disposable income saved.
C) the difference between the amounts of real disposable income consumed and saved.
D) the percentage of an additional dollar of real disposable income that will go toward additional real savings.
D
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If you pay $400 in taxes when you earn $10,000 and $600 in taxes when you earn $12,000, you are subject to a marginal tax rate of
A) 4%. B) 5%. C) 6%. D) 8%. E) 10%.
The analysis of how asymmetric information problems affect economic behavior is called ________ theory
A) uneven B) parallel C) principal D) agency
Price ceilings are typically imposed to benefit sellers
a. True b. False Indicate whether the statement is true or false
If restrictions on entry and exit of firms are introduced in free markets, ________
A) all existing firms earn equal profits in the long run B) existing firms incur equal losses in the long run C) the market allocates resources efficiently D) resources in the market are not allocated efficiently