The PPP theory fails in reality for all of the following reasons EXCEPT
A) transport costs.
B) monopolistic or oligopolistic practices in goods markets.
C) the inflation data reported in different countries are based on different commodity baskets.
D) restrictions on trade.
E) inflation rates are unrelated to money supply growth.
E
Economics
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Using the data in the above table, when output increases from 4 to 9 units, the marginal cost of one of those 5 units is
A) $4.00. B) $4.25. C) $5.00. D) $6.25.
Economics
The marginal propensity to consume (MPC) is computed as the change in:
a. consumption divided by the change in savings. b. consumption divided by the change in disposable personal income. c. consumption divided by the change in GDP. d. None of these.
Economics