Between 2011 and 2012 Real GDP Increased by $600 Billion

question 261

Multiple Choice

Between 2011 and 2012 real GDP increased by $600 billion and imports increased by $80 billion.Based on these data,the marginal propensity to import equals

• A) 0.13.
• B) 7.5.
• C) 0.87
• D) 0.08.

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Definitions:

Public Choice Analysis

A branch of economics that studies the decision-making processes of government bodies as well as the behavior of voters, politicians, and government officials.

James Buchanan

An American economist known for his work on public choice theory, which explains how political decision-making processes affect economic policies, and the recipient of the Nobel Memorial Prize in Economic Sciences in 1986.

Public Choice Analysis

A field of economics that studies how economic theory and methodologies apply to the public sector, analyzing government behavior and decision-making processes.

Logically Consistent Theory

A theory in which the statements and principles are coherently aligned and do not lead to any contradictions or inconsistencies.