1. What is the marginal propensity to consume if consumption drops from seven to six and disposable income drops from five to three?

2. If one's personal savings equals 12, and one's personal consumption equals 10, what is one's personal savings? What exactly does this entail?

3. What is the multiplier in the aggregate expenditures model when the change in equilibrium level of real GDP is 9, and the change in autonomous aggregate expenditures is 3?

4. What is the multiplier if the marginal inclination to save is a third of what it was before?

5. If a tax cut were to be adopted, which would cause the multiplier to shift to 5, what do you think would happen to the marginal inclination to save?

Part 2

1) Assume you could either prepare tax return in 15 hours or hire a tax professional to do it in 2 hours. You value your time at $11 per hour, whereas the tax expert will charge $55 per hour. A) $40 is the potential cost of preparing your own tax return.

B) $55.

C) $110.

D) $165.

Which of the following would be a firm's implicit cost?

A) The cost of employee pay and salaries for the business B) The cost of leasing a building for the business C) The cost of production materials for the business D) The cost of earnings foregone by the business owner

Which of the following is an implicit cost for Asart Manufacturing Company?

A) Wages paid to its office employees B) Rent paid for the usage of Butters Machinery Company's equipment

C) Lost interest revenue as a result of using funds to meet operating expenses.

D) Payments made using current production's economic earnings

4) Economic production costs

A) only include stated costs.

B) account for opportunity costs

C) never incorporate financial transactions.

D) exclusively cover financial transactions.

5) If a company's economic profit is zero and its implicit costs exceed zero, then A) its accounting profit is also zero.

B) the accounting profit is negative.

C) the accounting profit exceeds zero.

D) new companies will enter the market.