Refer to Table 11.1. If the marginal propensity to consume decreases to 0.05 (MPC = 0.05), what is the new equilibrium level of output?

Optimization in levels calculates:

A) only the costs of an alternative and not the benefits. B) the total net benefits of different alternatives. C) the change in net benefits resulting from a shift from one alternative to another. D) only the benefits of an alternative and not the costs.

Which of the following increases total factor productivity?

A) investment in machinery B) a harsh winter C) better access to credit D) new production procedures