If consumption is $800 when income is $1,000 . the marginal propensity to consume (MPC) must be 0.80
a. True
b. False
Indicate whether the statement is true or false
False
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The disappointment with import-substitution policies is in part because
A) of the rapid and continuous growth record of South American countries. B) many countries pursuing this strategy experienced stagnation in their growth. C) this policy is inconsistent with sophisticated economic growth models. D) this policy tended to create world-class industrial competitors. E) of the financial investment lost by the U.S.
Given the information in Scenario 4.3, suppose that the price of erasers increases slightly from $10. How will this affect the total revenue collected by the firm?
A) Total revenue will increase. B) Total revenue will not change. C) Total revenue will decrease. D) There will be an indeterminate change in total revenue.