If the marginal propensity to consume = 0.75, then:
A. the marginal propensity to save = 0.75.
B. the marginal propensity to save = 0.25
C. the marginal propensity to save = 0.20.
D. since the marginal propensity to save and the marginal propensity to consume are unrelated, we cannot determine the marginal propensity to save from the information given.
Answer: B
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A firm's long-run average cost curve shows the ________ average cost at which it is possible to produce each output when the firm has had ________ time to change both its labor force and its plant
A) highest; sufficient B) lowest; sufficient C) lowest; insufficient D) highest; insufficient E) average; sufficient
The theory of consumer behavior assumes that consumers attempt to maximize:
A. the difference between total and marginal utility. B. total utility. C. average utility. D. marginal utility.