Q: Explain the relationship between MPL and MC
A: Marginal Product of Labor (MPL): - it is the change in total production due to the employment of an…
Q: Change in consumer incomes Change in prices of соmpeting products Change in prices for raw materials…
A: The demand and supply curves both are the functions of price and quantity. There are many factors…
Q: Explain the term random walk in consumption. Under what conditions will consumption follow such a…
A: Random walk in consumption:- Since consumers usually modify regular consumption whenever they get…
Q: what does it mean to have a linear correlation? Give an example of one.
A: Correlation can be defined as a linear relationship between two variables. The value of correlation…
Q: If an individual saves $10,000 when his disposable income is $80,000. How much money does he…
A: Disposable income: Disposable income is the total income that is available to an individual for…
Q: Can MPC be negative or greater than 1? Why or why not
A: Marginal propensity to consume (MPC): MPC measures the change in spending on consumption with the…
Q: Make a graph based off the following: Construct a consumption function from the data given here and…
A: Answer: Graphical presentation of the consumption function: According to the above figure, the…
Q: What is the type of consumption of household spending which is independent
A: Consumption is referred to as the usage of goods and services by individuals.
Q: What is meant by the tetm "random walk "? Under what conditions will consumption function follow…
A: The Random walk theory of consumption states that the consumption patterns of consumers cannot be…
Q: What are the relationships between TP, MP and AP curves?
A: The additional quantity of output produced as a result of using more input is referred to as…
Q: Your answer: 1 Countries with a high gross domestic product are low consumers of energy. 2…
A: There is direct relationship in energy consumption and gross domestic product.
Q: Calculate the MPC when MPS is given to be as 0.9
A: Marginal propensity to consume (MPC) refers to the proportion of increase in income that a consumer…
Q: Price of advertising in newspapers and magazines are Rs.5 and Rs.10 respectively. The total budget…
A: General budget constraint can be Witten as follows. Substitute the respective values in Equation…
Q: The value of MPC is 0.21 Find the value of MPS
A: # The relationship between MPS and MPC is :- MPS = 1 - MPC This is because the sum of MPS and MPC is…
Q: Calculate the average propensity to consume if consumption is $1800 and the income is $2200
A: The given information is:- Consumption = $1800 Income = $2200 We have to calculate APC
Q: The functional relationship between savings and income is known as _________ function
A: # Saving is one of the component of income which remains unconsumed. Savings can be zero or even…
Q: Find the APC when consumption is said to be 192 and the income is 246
A: Basically in the given question Consumption value is = 192 Income is given = 246 APC = ?
Q: The slope of IC2 from A to B is: Good X 10 IC 8 ICz 10 12 Good Y 00
A: Indifference curve shows different combinations of two goods that give same level of utility.
Q: consumption of income is $390 and APC is 0.34
A: APC is the Average Propensity to Consume Formula: APC = C/Y where, APC = Average Propensity to…
Q: What is the NPV?
A: Economics studies the production, distribution and allocation of resources. Engineering economics…
Q: If the MPC is given as 0.55 find the value of MPS.
A:
Q: # Calculate MPC when it is given that the value of MPS Is 0.66
A: # We know that when we do the summation of MPS and MPC we always get 1 That is:- MPS + MPC = 1
Q: The value of MPC is 0.76 Calculate the value of MPS
A: We are given that:- Marginal propensity to consume = 0.76 Also we know that the sum of MPS and MPC…
Q: What is a probit model?
A: The Probit model is used in a regression analysis where the dependent variable is dichotomous i.e.…
Q: The change in consumption is $300 and change in income is $1000 Find the value of MPC
A: The marginal propensity to consume (MPC) measures the proportion of a unit of the consumer's income…
Q: Calculate MPC when MPS is given to be as 0.9
A: # We know well that the sum of MPS and MPC is given as 1 MPS + MPC = 1
Q: Solve for the MPK, assuming that the MPL in the production of smartphones is 50 per smartphone per…
A: with the given information, MPL = 50 MRTS = 1/4
Q: There is a direct relationship between spendable income and consumer spending
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Which one of the following is NOT a possible relationship between income and spending Select one: a.…
A: The equation that shows the relationship between the income and spending is written as C=a+bYd Yd is…
Q: Calculate the value of consumption if APC is 0.31 and income is $4499
A: The given information is as follows:- Average propensity to consume = 0.31 Income of the household =…
Q: Household spending on education is included in consumption of services. Select one: a. False b. True
A: Household spending on education is included in the consumption of services. Select one: a. False…
Q: What is the effect on MPE, if there is an increase in a) MPC b) MPS c) MPM ) MTR
A: MPE stands for marginal propensity to expend. MPS stands for marginal propensity to save MPC stands…
Q: Use the Lagrange multiplier method to optimize the objective function 30xy subject to the constraint…
A:
Q: The reason for TVC curve to be S shaped is the law of ___________
A: # the total variable cost is one of the constituent of the total cost of the firm. The total cost of…
Q: Identify any three non‐income determinants of consumption
A: The consumption function shows the functional association between the gross national income and…
Q: The value of consumption is $1000 and income is $2200 Calculate the value of average propensity to…
A: The given information is as follows:- Consumption = $1000 Income = $2200 This means out of $2200,…
Q: The upward-sloping TVC curve explains why an increase in production increases the TC.
A: According to the production theory, a firm always works towards maximizing its profit and a firm…
Q: HDI vs GNI formula to create scatterplot
A: HDI also called Human Development Index is a measure of average achievements of various human…
Q: For a given household, the value of change in consumption is $2500 and the change in income is $6200…
A: The data given to us is:- Change taking place in consumption = $2500 Change taking place in income =…
Q: Find the level of savings when consumption is $610 and the income is $111
A: Generally in the given question Consumption amount is =$610 Income is = $111 Savings = ?
Q: Calculate the value of consumption if APC is 0.31 and income is $4499.
A: Given data: Average propensity to consume, APC=0.31 Income is $4499.
Q: If the consumption is 450 and the investment is 240 find the aggregate demand
A: Aggregate demand (AD)= Consumption +Investment +Government spending +(Export-Import)
Q: The autonomous consumption expenditures and autonomous investment expenditures in an economy are…
A: C= Ca + MPC*Y C= 600 + 0.7Y AE = C + I AE = 600 + 0.7Y + 350 AE= 950 + 0.7Y At equilibrium, Y= AE…
Q: what does (D1/P0) represent?
A: This formula represents the following stated in the next step.
Q: Given the scatter diagram in Figure 8-1, what is the MPC (your best estimate)? a. 1 b. 2/3…
A: MPC is marginal propensity to consume. It is percentage of income that is spent on consumption.
Q: THE EFFECT OF COVID 19 IN THE ECONOMY OF THE PHILIPPINES"
A: It is the broadest classification for an RNA virus. In most situations, determining whether your…
Q: if the value of MPC is 0.29 Find the value of MPS
A: Generally in the given question MPC is given as = 0.29 So the value of MPS is needed = ?
Q: Find the average propensity to consume and consumption is given as $1300 and income is given as…
A:
Calculate the value of MPC. The value of MPS is given to be as 0.95
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