In Latin America, About What Percentage of People Live in Cities

question 53

Multiple Choice

In Latin America, about what percentage of people live in cities?

• A) 80
• B) 20
• C) 70

Grasp the effects of changes in autonomous investment on the economy's equilibrium and the concept of the spending multiplier.

Comprehend how current production levels relative to planned expenditure affect inventories and production decisions.

Understand how autonomous investments affect aggregate expenditure and its impact on the economy.

Calculate and understand the implications of the simple spending multiplier based on the marginal propensity to consume and save.

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Definitions:

Marginal Cost

The extra expense resulting from the production of a single additional product or service unit.

Fixed Cost

Fixed costs are business expenses that remain unchanged regardless of the level of production or sales, such as rent, salaries, and insurance premiums.

Output

The cumulative sum of products and services generated by an economy.

Average Fixed Cost

The set expenses associated with production (not influenced by production scale) distributed over the number of items produced.