If the Value of the Multiplier in a Closed Economy

question 99

Multiple Choice

If the value of the multiplier in a closed economy with no government sector is equal to 5, then which of the following is true?

• A) The level of output of goods and services in the economy will equal 100.
• B) The marginal propensity to consume in the economy will be equal to 0.4.
• C) The level of investment in the economy will be equal to 400.
• D) The marginal propensity to save in the economy will be equal to 0.2.

Understand the impact of supply chain design on transportation costs, emissions, and consumer costs.

Grasp the significance of product design in reducing transportation costs and emissions.

Comprehend how remanufacturing contributes to profitability and sustainability in supply chains.

Recognize how companies implement sustainable practices in packaging, energy consumption, and overall supply chain management.

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or job orders, calculated before the production period begins based on estimated costs.

Direct Labour Hours

The total hours worked by employees directly involved in the manufacturing process, affecting the overall production cost.

Actual Manufacturing Overhead

The total of all actual indirect costs incurred in the production process, not directly tied to a specific product.

Job-Order Cost Sheets

Documents that track the expenses associated with manufacturing a specific job, including materials, labor, and overhead.