If an Economy's Real GDP Increases from $100 Billion to $150

question 44

Multiple Choice

If an economy's real GDP increases from $100 billion to $150 billion, and at the same time its imports increase from $40 billion to $50 billion, then the marginal propensity to import

• A)is greater than 0.2 and less than 0.4.
• B)decreases from 0.4 to 0.2.
• C)is 0.4.
• D)is 0.2.
• E)is 0.36.

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Definitions:

Per-Worker Production Function

The per-worker production function depicts the relationship between the average product output per employee and the inputs used per employee, highlighting the efficiency of labor in production.

Attainable

Referring to a goal or objective that can be reached or achieved, especially through effort or strategy.

Per-Worker Production Function

A graphical representation that shows the relationship between the amount of output produced per worker and the amount of capital available per worker.

Shape

The external form or appearance of an object, defined by its outline or surface configuration.