If Option A costs $40 and yields 20 units of output and Option B costs $50 and yields 30 units of output,
A) Option B and Option A are equally economically efficient.
B) Option B is economically efficient relative to Option A.
C) Option A is economically efficient relative to Option B.
D) It is not possible to determine which option is more economically efficient.
D
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The major objective of the 1986 tax reform was to: (i) enhance efficiency by lowering marginal tax rates; (ii) enhance equity by closing "loopholes."
a. i and ii b. i but not ii c. ii but not i d. neither i nor ii
If the marginal propensity to consume = 0.75, then:
A. the marginal propensity to save = 0.75. B. the marginal propensity to save = 0.25 C. the marginal propensity to save = 0.20. D. since the marginal propensity to save and the marginal propensity to consume are unrelated, we cannot determine the marginal propensity to save from the information given.