In Figure 3-5 above, the marginal propensity to save is
A) 0.20.
B) 0.80.
C) 0.05.
D) 0.02.
C
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The cyclical deficit is that portion of the deficit
a. that results from the economy being below the natural rate of output. b. that would exist even if the economy were at its natural rate of output. c. is a function of the level of automatic stabilizers. d. both a and c. d. None of the above
If using the same resources, the U.S. workers can produce more of any good than Mexican workers, then the United States should produce every good
a. True b. False Indicate whether the statement is true or false
Preferred Budgets ($ in millions)45678910Number of voters (in thousands)516253022193Table 15.3Table 15.3 shows the preferred budget for a new performance center and the number of voters in a community who prefer that budget. If Dawn proposed $5 million while Terry proposed $9 million, Dawn will get ________ thousand votes while Terry gets ________ thousand votes.
A. 46; 44 B. 46; 74 C. 61; 59 D. 76; 44
There are only two firms in an industry with demand curves q1 = 30 - P and q2 = 30 - P. Both have no fixed costs and each has a marginal cost of 10 per unit produced. If they behave as profit-maximizing price takers, each produces 20 units and sells them at a price of 10 so that each firm makes zero economic profits. If they formed a cartel and split the production of the output evenly, the
profit-maximizing quantity produced by each firm is A) 5. B) 10. C) 15. D) 20.