In the definition of marginal propensity to consume, propensity to consume refers to ______.
a. the amount of extra taxes someone pays as a result of extra income
b. the total income someone receives, including any extra income
c. the additional amount of disposable income someone receives
d. the amount of additional income spent on consumer goods and services
d. the amount of additional income spent on consumer goods and services
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Some nations that seek to produce all of their own needs face the problem that a. they can deplete their natural resources faster as a result
b. some industries are too small to be efficient if restricted to their domestic markets alone. c. the opportunity cost of producing some of their own goods is higher than that of trading with others for them. d. all of the above are true.
Cost-benefit analysts often encounter the problem that those who would benefit from government provision of a public good tend to
a. overstate the benefit they would receive from the public good and those who would be harmed by government provision of a public good tend to overstate the costs they would incur from the public good. b. overstate the benefit they would receive from the public good and those who would be harmed by government provision of a public good tend to understate the costs they would incur from the public good. c. understate the benefit they would receive from the public good and those who would be harmed by government provision of a public good tend to overstate the costs they would incur from the public good. d. understate the benefit they would receive from the public good and those who would be harmed by government provision of a public good tend to understate the costs they would incur from the public good.
At levels of output close to full employment, the aggregate supply curve is probably
A. very flat. B. very steep. C. sloped downward. D. perfectly elastic.
Whenever actual reserves exceed required reserves, the bank
What will be an ideal response?