If you know the marginal propensity to consume you can determine the marginal propensity to save. How is that possible?
What will be an ideal response?
The marginal propensities sum to 1 (MPC + MPS = 1). Thus, if you know the value of one marginal propensity (e.g., MPC), you can always figure out the other marginal propensity (e.g., 1 ? MPC = MPS).
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Use the following table to answer this question, which provides information on the production of a product that requires one variable input.InputTotal Product00102002060030720408205090060980The marginal product of the 30th input item is
A. 24. B. 120. C. 12. D. 200.
An increase in taxes on labor income shifts the labor supply curve ________, and the ________
A) leftward; after-tax wage rate falls B) rightward; before-tax wage rate rises C) leftward; before-tax wage rate does not change D) leftward; after-tax wage rate rises E) leftward; after-tax wage rate does not change
The process of adjustment to a new long-run equilibrium in a perfectly competitive industry is not complete if
A. other firms want to enter the industry. B. all firms are at the minimum average cost. C. all firms receive zero economic profit. D. no firms want to exit the industry.
Purchases of foreign assets by U.S. residents are tabulated in the U.S. balance of payments as a:
a. capital inflow. b. capital outflow. c. current account outflow. d. unilateral transfer.