EBK FOUNDATIONS OF ECONOMICS
8th Edition
ISBN: 8220103632225
Author: PARKIN
Publisher: PEARSON
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Chapter 21, Problem 3MCQ
To determine
Correct option
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Students have asked these similar questions
MPC and MPS measure changes in consumption expenditure and saving that result from changes ?.
A. expected inflation. (b) disposable income. (c). expected future income.
(d)governmente expenditure on goods and services.
44.
Which component of GDP will increase if disposable income increases?
a.
Government spending
b.
Investments
c.
Consumption
d.
Net exports
ADVANCED ANALYSIS Linear equations for the consumption and saving schedules take the general form
C= a+ bY
and
S=-a+ (1- b) Y,
where C, S, and Yare consumption, saving, and national income, respectively. The constant a represents the vertical intercept, and b
represents the slope of the consumption schedule.
a. Use the following data to substitute specific numerical values for a and b in the consumption and saving equations.
National Income (Y)
Consumption (C)
$ 70
100
140
210
200
300
280
350
480
Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers:
b. What is the economic meaning of b?
MPC
What is the economic meaning of (1- 6)?
Chapter 21 Solutions
EBK FOUNDATIONS OF ECONOMICS
Ch. 21.A - Prob. 1SPPCh. 21.A - Prob. 2SPPCh. 21.A - Prob. 3SPPCh. 21.A - Prob. 4SPPCh. 21.A - Prob. 5SPPCh. 21.A - Prob. 6SPPCh. 21.A - Prob. 7SPPCh. 21.A - Prob. 1IAPCh. 21.A - Prob. 2IAPCh. 21.A - Prob. 3IAP
Ch. 21.A - Prob. 4IAPCh. 21.A - Prob. 5IAPCh. 21.A - Prob. 6IAPCh. 21.A - Prob. 7IAPCh. 21 - Prob. 1SPPACh. 21 - Prob. 2SPPACh. 21 - Prob. 3SPPACh. 21 - Prob. 4SPPACh. 21 - Prob. 5SPPACh. 21 - Prob. 6SPPACh. 21 - Prob. 7SPPACh. 21 - Prob. 8SPPACh. 21 - Prob. 9SPPACh. 21 - Prob. 10SPPACh. 21 - Prob. 1IAPACh. 21 - Prob. 2IAPACh. 21 - Prob. 3IAPACh. 21 - Prob. 4IAPACh. 21 - Prob. 5IAPACh. 21 - Prob. 6IAPACh. 21 - Prob. 7IAPACh. 21 - Prob. 8IAPACh. 21 - Prob. 9IAPACh. 21 - Prob. 10IAPACh. 21 - Prob. 11IAPACh. 21 - Prob. 12IAPACh. 21 - Prob. 1MCQCh. 21 - Prob. 2MCQCh. 21 - Prob. 3MCQCh. 21 - Prob. 4MCQCh. 21 - Prob. 5MCQCh. 21 - Prob. 6MCQCh. 21 - Prob. 7MCQ
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Similar questions
- 1. From the table below, gross domestic product equals: a. $1,110 b. $1,265 c. $1,470 d. $1,695 Personal Income Taxes $130 Government Purchases of Goods and $150 Services Gross Private Domestic Investment $230 Net Interest $75 Sales Taxes Net Exports of Goods and Services Personal Consumption Expenditures Depreciation $35 $55 $725 $175arrow_forward10 In the expenditure approach, the total expenditures of the following entities are calculated, except a. Gross taxable incomes b. Gross private domestic investment c. Government expenditures d. Net Exportsarrow_forwardIncrease in tax by the government: a. None of these b. Decreases the consumption by individuals c. Increases the saving by individuals d. Increases the consumption by individualsarrow_forward
- GDP is $5 trillion. Depreciation is $1 trillion. Gross output is $17.25 trillion. What is th value of all stages of production and distribution except for final sales of goods and services?arrow_forward2. The following table shows the figures of National Income for a country. Item RM millions 1500 Gross Investment Government expenditure Consumption expenditure 2500 3000 Indirect Taxes 500 Subsidies 600 Export 1100 Import 1000 Depreciation 400 Net income from abroad 200 Calculate : a. GDPmp b. GNPmp c. NIarrow_forwardFor a consumption dependent economy like Malaysia and the United States, which factor contributes most to their GDP? a. Government spending b. Gross private domestic consumption c. Foreign direct investments d. Net exportsarrow_forward
- 1 Which one of these will be deducted from gross output to determine the net output? a. Intermediate consumption b. Factor income from abroad c. Total government spending d. Private incomearrow_forward1. This expenditure (formerly general government consumption) includes all current government expenditures for purchases of goods and services (including an employee). a. Capital expenditure b. Consumption c. Utilization d. Transfer paymentsarrow_forward1- Answer the following questions, According to given data about Country X, Corporation Tax Insurance Payment Student Grant Payments Export Import Retained Earnings Government Expenditures Depreciations Consumption Payments Personel Taxes A. What is the value of Gross Domestic Product for country X? B. What is the value of Gross National Product for country X? C. What is the value of Net National Product for country X? D.What is the value of National Income for country X? E. What is the value of Personel Income for country X? F. What is the value of Disposable Personel Income for country 25 15 15 25 15 40 X? 400 30 950 60 Indirect Taxes 70 Other Transfer Payments 20 Gross Investments 250 Net Foreign Factor Income Interest Earnings 55 15arrow_forward
- Compute for GNP using Expenditure, Income, and Valued Added Approach. Personal Consumption Expenditures Rents, Interests, Dividends, Wages 1,100,000 950,000 Government Income 35,000 Indirect Taxes 130,000 Exports of goods and non-factor services Fixed Capital Formation Forestry 650,000 270,000 55,000 Government Services 120,000 Imports of goods and non-factor services Subsidies 640,000 5,000 Trade 280,000 Increase in Stocks Corporate Income Depreciation Allowance General Govemment Consumption Expenditures Net Factor Income from Abroad Agriculture 7,000 60,000 17,000 80,000 20,000 550,000 Real Estate 150,000arrow_forward2. Which of the following is NOT included in the calculation of GDP? a) Investment spending b) Government spendingarrow_forwarde the information in the table to answer the folowing qustiona. Al numbers are in bilions of 2012 dolars Govermment Purchases (G) $2.00 $2.500 $2.500 $2.500 $2.500 Pianned investment ( $1.000 Net Exports (NK) Real GOP (Y) Consumption (C) $12.000 $13.000 $14,000 $15.000 $10.000 $9.500 $10.250 $1.000 -$500 -$500 -5500 -$500 -$500 $1.000 $1,000 S11,750 $1.000 $12.500 $1.000 The equibrum level of GOP is S bilion The MPC is (snter your reaponse to two decimal places) Suppose that net exporta increase by $200 blion. Using the multiplier formua, determine the new level of GOP. AS200 bilon increase in net exports leads to a change in spending of S bilion, so the new level of GDP wi be billonarrow_forward
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