The marginal propensity to save (MPS) is the
A) fraction of additional income that is saved.
B) amount of saving that is later consumed.
C) total amount of income that is saved.
D) part of consumption spending that does not depend on income.
A
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To be effective, the minimum wage must be set ________ the market-clearing wage, and this will result in a ________ of labor
A) above; surplus B) above; shortage C) below; surplus D) below; shortage
In economic theory, if an additional worker adds less to the total output than previous workers hired, it is because
A) there may be less that this person can do, given the fixed capacity of the firm. B) he/she is less skilled than the previously hired workers. C) everyone is getting in each other's way. D) the firm is experiencing diminishing returns to scale.