Consider the following information for a family. The income for the family is $58,000; if the MPS is 0.25, and the income for the family decreases by $15,000, then the decrease in consumption will be:

At a market equilibrium, the marginal net benefit curve is

a. Horizontal b. Vertical c. Increasing d. Decreasing e. Maximized

Comparisons of GDP between developed and underdeveloped countries are often misleading because underdeveloped countries produce

a. a greater share of their total production in the household sector, which understates their GDP relative to developed countries. b. a smaller share of their total production in the household sector, which understates their GDP relative to developed countries. c. a greater share of their total production in the household sector, which overstates their GDP relative to developed countries. d. a smaller share of their total production in the household sector, which overstates their GDP relative to developed countries.