When the income multiplier is 3, the marginal propensity to save is
a. 1/(1 + MPC)
b. 0.33
c. 1/(1 – MPC)
d. 0.66
e. none of the above
B
You might also like to view...
If nation A has a comparative advantage over nation B in the production of a product, this implies:
a. it requires fewer resources in A to produce the good than in B. b. the cost of producing the good in terms of some other good's production that must be sacrificed is lower in A than in B. c. that nation B could not benefit by engaging in trade with A. d. that nation A should acquire this product by trading with B. e. that nation A could not benefit by engaging in trade with B.
When a country has a lower opportunity cost in producing a good than any other country,
A. It has favorable terms of trade in producing the good. B. It necessarily has an absolute advantage in producing the good. C. Production possibilities are no longer limited. D. Consumption possibilities will increase with specialization and trade.
Which of the following episodes would most likely contain an externality?
A) You cannot afford to buy groceries. B) You decide to grow your own vegetables in your backyard where no one else can see them. C) You decide to grow flowers in your front yard where everyone else can see them. D) You eat all the vegetables you grow yourself.
Refer to Figure 16-5. Suppose the firm represented in the diagram decides to practice perfect price discrimination. What is the total revenue collected by the firm?
A) $6,720 B) $7,680 C) $10,240 D) $13,440