Suppose Consumers Save 8 Percent of Their Incomes

question 81

Multiple Choice

Suppose consumers save 8 percent of their incomes. If the government collects 4 dollar in taxes from each taxpayer and invested it in infrastructure, total social investment will ________ per taxpayer.

• A) increase by $ 4.32
• B) increase by $3.68
• C) increase by 32 cents
• D) decrease by 64 cents

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Definitions:

Specialization

The process of focusing on and becoming expert in a particular subject or skill, or of businesses, regions, or nations concentrating on producing certain goods or services.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, essentially what is given up when choosing one option over another.

Specialization

The practice of focusing effort on a particular field or discipline, leading to increased efficiency and expertise in that area.

Cheese

A dairy product made from curdled or cultured milk, coming in various textures and flavors.