If PX > MCX, society gains by ?

A. Raising the price of x.
B. Production less x
C. Producing more x
D. Increasing the cost of producing x

The total cost to society of producing an additional unit of a good or service is the ?

A. Marginal damage cost
B. Marginal social cost
C. Marginal private cost
D. Marginal external cost

Assuming there is no government or foreign sector the formula for the multiplier is ?

A. 1/mps
B. 1/(1+ mpc)
C. 1 – mpc
D. 1/mpc

According to the paradox of thrift increased efforts to save will cause ?

A. An increase in income and an increase in overall saving
B. A decrease in income and an overall decrease in saving
C. A decrease in income but an increase in saving
D. An increase in income but no overall change in saving

The accelerator theory of investment says that induced investment is determined by ?

A. The level of national income
B. The level of aggregate demand
C. The rate of change of national income
D. Expectations

Assuming there is no government or foreign sector, if the MPC is 8 the multiplier is ?

A. 5
B. 8
C. 2
D. 1.25

The proportion of an increase in national income paid in tax is ?

A. The fiscal stance
B. The tax multiplier
C. The marginal tax propensity
D. The average tax propensity

In macroeconomics, equilibrium is defined as that point at which ?

A. Aggregate output equals consumption minus investment
B. Saving equals consumption
C. Planned aggregate expenditure equals aggregate output
D. Planned aggregate expenditure equals consumption

Disposable income is the part of households income left after the deduction of ?

A. Income tax and social security payments
B. Taxes and the addition of benefits
C. Income tax
D. Contractual payments such as pensions and mortgages

The marginal propensity to save (MPS) is ?

A. The average amount of income that is saved
B. The fraction of a change in income that is saved
C. The ratio of saving to income
D. The ratio of income to saving