<span>The marginal propensity to consume (MPC) is the the change in consumption divided by change in income. Where change in in consumption = $50B and change in income = $200B. So we have 50/200 =1/4 = 0.25. So the MPC is $250M</span>
Answer:
Each hour she spends swimming is an hour that she can't spend biking or running. The basic principle this sentence illustrates is:
All choices have opportunity cost.
Explanation:
As per the given situation, Caroline decides to go for swimming. So the time she invests in swimming, she could have done for biking or running during that time. So, opportunity cost of one hour of swimming is an hour of biking or running. Also it is not known that whether Caroline has an incentive if she spends more time swimming. This applies for an hour spent for biking or running as well. Thus, all the three choices have an opportunity cost.
Real GDP this year using last year as the base year is
B) $700
Explanation:
- Last year, 10th DVDs were sold at $20 each and 5 DVD players were sold at $100 each, while this year 15 DVDs were sold at $10 each and 10 DVD players were sold at $50 each. Real GDP this year using last year as the base year is $700.
- Gross Domestic Product (GDP) is the monetary value of all finished goods and services made in a country during a specific period of time.
- The Gross Domestic Product calculates the real value of economic activity within a country.
- GDP is a number that shows the net worth of the output of a country in local currency.
- It represents the value of all goods and services produced in a specific time period within a country's borders.
- Gross domestic product (GDP) is the total value of everything produced in a country.