An economy has two workers, Jen and Rich. Every day they work, Jen can produce 2 TVs or 10 radios, and Rich can produce 4 TVs or 12 radios. To maximize total output, Jen should specialize in producing ________ while Rich should specialize in producing ________.

The average propensity to consume (APC) equals

A) the change in consumption expenditures divided by the change in real disposable income. B) real disposable income divided by consumption expenditures. C) the change in real disposable income divided by the change in consumption expenditures. D) consumption expenditures divided by real disposable income.

According to the text, Zambia faces decreasing living standards because

a. it is hoarding gold b. the kwacka is rising in value relative to the dollar c. it has a positive balance on its current account d. it has taken steps to reduce its international debt e. its debt service is relatively high