If the MPC is 0.80 then the MPS is Question 2 options: a) 5 b) 0.30 c) 8 d) 0.20

The ‘marginal propensity to consume(MPC)’ is referred to as the proportion of an aggregate…

Answered: f the MPC is 0.80 then the MPS is

Business

Economics

f the MPC is 0.80 then the MPS is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Find P(-1.35 < z < 1.35) a 0.8230 b 0.7990 c 0.7757 d 0.7531

A: A z -score refers to a score that indicates the number of standard deviations between a certain…

Q: Calculate the incremental Benefit-Cost ratio of the following alternatives: A B Costs ($/year)…

A: Problem 2: Book value after 3 yearsAn engineering firm purchases a new industrial drill press for…

Q: The annual benefits of $4,000 every year for three years may be obtained for an investment on a…

A: NPW ($) = - Initial cost + Present value of $4,000 per year for 3 years + Present value of $5,000 at…

Q: Exhibit2 Price 85 80 75 70 65 60 55 50 45 1920x220 27.5 35 Supply Demand 5101520253050505065 70…

A: Producer surplus is the economic benefit that producers receive by selling a good or service at a…

Q: The following four alternative investments are being compared at MARR of 12%. Which investment is…

A: Net Present Value (NPV): This is the present value of cash inflows minus the present value of cash…

Q: Which of the following statements is correct about this figure A) Wide bar = low abatement…

A: The correct answer is Option B: Short bar = Lots of Abatement per €

Q: The owner of a Production Company intends to increase the output of his/her firm by purchasing a new…

A: * Net present value is discounted value of future cash flows for any alternative . Alternative…

Q: Sandra and Mary live next to each other. Sandra has a dog that she walks every day. Sandra has to…

A: Externality refers to the external costs and benefits that are imposed on someone without their…

Q: 8-33 The owner of a downtown parking lot has employed a civil engineering consulting firm to advise…

A: PLEASE FIND THE ANSWER BELOW.

Q: Evaluate the two alternatives A and B and decide the economic justified alternative using: Present…

A: Since you have posted Multiple Subparts as per the guidelines we can solve only the first 3…

Q: You and your friends have decided to build a skateboard ramp behind your house. You have already…

A: Explicit cost is the cost which has to be paid to outsiders for getting the product ready.Implicit…

Q: A Clinical Laboratory plans to build a waste water management installation (IPAL) independently. For…

A: Equivalent Uniform Annual Cost (EUAC) is a financial metric used in various fields, including…

Q: You have access to two N-fertilizer sources. Which is the more economical option? urea (46-0-0):…

A: To determine the most economical option ascertain the cost per pound of nitrogen from both sources.…

Q: Hannah Byers and Kathleen Taylor are considering the possibility of teaching swimming to kids during…

A: Cost of renting pool = 1700 other fees = 7 per pupil additional cost for assistance = 5 per student…

Q: Axis Corp. is studying two mutually exclusive projects. Project Kelvin involves an overhaul of the…

A: We Show that To calculate the NPV of the Kelvin project, we must discount the cash inflows to their…

Q: D 20 40 40 09 60 0 1 88 80 4 3 2 100 120 5 6 7 8 9 10 Z ZZZZ Z a) Z=20(A/G, 10%, 6) b) Z=20+20(A/G,…

A: Answer:To determine the correct option, we need to understand the function Z and the parameters used…

Q: A new manufacturing line is being built and your team has narrowed it down to 2 options. Which one…

A: LCM of 10 and 20 = 20 Years.

Q: A particular apartment building has changed ownership three times in 10 years. and the price has…

A: When analyzing the given information, it can be seen that the past of the building explains the…

Q: he marginal benefit of being able to emit a ton of sulfur dioxide emissions for two firms are given…

A: The two marginal benefts are MBX = 1000 - EX/2 MBY = 600 - EY/3 Government regulators want to reduce…

Q: The fixed cost at Harley Motors are $1 Million annually. The min. product has revenue of $8.90 per…

A: Given Fixed costs = 1 Million $ Revenue per unit = 8.90 $ Variable cost = 4.50 $ per unit

Q: You have an opportunity to invest $49,300 now in return for 500,500 in one year if your cost of…

A: If $49,300 is invested today, then we will receive $60,500 after one year. Also, the cost of capital…

Q: The city of St. John's is intalling a new swimming pool in the east end recreation centre. One…

A: Present worth, also known as present value, is a financial concept used in the field of time value…

Q: The capital investment cost for a switchgrass-fueled ethanol plant with a capacity of 200,000…

A: The power-sizing technique is used to calculate the cost of a plant with a capacity of 450,000…

Q: A local government is considering promoting tourism in the city. It will cost$8,000 to develop a…

A: The present value of total benefit can be calculated as follows:

Question

If the MPC is 0.80 then the MPS is

Question 2 options:

0.30

0.20

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

6.1 A dam is proposed on a stretch of wild river, a river that is currently used for recreation. The dam will generate electricity. The dam will have a useful life of 50 years, after which its reservoir will be full of sediment and the dam will need to be removed. The following are characteristics of the dam: Initial Cost: $100,000,000 Electricity produced: 100,000 MWh per year at $100/Mwh Cost of decommissioning dam: $10,000,000 Value of recreation lost: $5,000,000 per year Assume that costs and benefits accrue at the end of each period. a. If the social discount rate is 3% per year, is the dam a good idea? b. If the social discount rate is 10% per year, is the dam a good idea? c. Calculate the "cutoff" discount rate, c, such that the dam is a good idea for discount rates rc and a bad idea for discount rates r > c.
Both connected if possible pls answer
You have been asked to perform an economic evaluation of two projects and recommend one of them for implementation. The project parameters are as follows: Project A Project B Discount Rate 4.0% 4.0% Your analysis concludes that: Project Cost $1,000,000 $750,000 Project Life (yrs) 10 15 Elec. Savings Elec. Cost (kWh/yr) ($/kWh) 800,000 600,000 O Project A is preferable, but Project B also has attractive performance. O Project B is preferable, but Project A also has attractive performance. O Project B is preferable and Project A results in a net loss. O Project A is preferable and Project B results in a net loss. $0.12 $0.12 Annual Cost Escalation Rate 1.5% 1.5%
A school is overcrowded and there are three options. The do-nothing alternative corresponds to continuing to use modular classrooms. The school can be expanded, or a new school can be built to "split the load" between the schools. User benefits come from improvements in school performance for the expanded or new schools. If a new school is built, there are more benefits because more students will be able to walk to school, the average distance for those who ride the school buses will be shorter, and the schools will be smaller and more "student friendly." The disbenefits for the expanded school are due to the impact of the construction process during the school year. The interest rate is 8%, and the life of each alternative is 20 years. Which alternative should be chosen? What is the incremental ratio for the preferred alternative? Alternative User benefits ($M/yr) User disbenefits ($M) First cost ($M) Operations and maintenance ($M/yr) (a) Use the benefit-cost ratio. (b) Use the…
The student chapter of the American Society of Mechanical Engineers isplanning a six-day trip to the national conference in Albany, NY. For transportation, the group will rent a car from either the State Tech Motor Pool or a local car dealer. TheMotor Pool charges $0.36 per mile, has no daily fee, and pays for the gas. The local car dealer charges $30 per day and $0.20 per mile, but the group must pay for the gas. The car’s fuel rating is 20 miles per gallon, and the price of gas is estimated to be $2.00 per gallon. Solve, a. At what point, in miles, is the cost of both optionsequal? b. The car dealer has offered a special student discount and will give the students 100 free miles per day. What is the new breakeven point? c. Suppose now that the Motor Pool reduces its all-inclusive rate to $0.34 per mile and that the car dealer increases the rate to $30 per day and $0.28 permile. In this case, the car dealer wants to encourage student business, so he offers 900 free miles for the…
A major equipment purchase is being considered by Metro Atlanta. The initial cost is determined to be $1,000,000. It is estimated that this new equipment will save $100,000 the first year and increase gradually by $50,000 every year for the next 6 years. MARR=10% a. Using Benefit- Cost analysis, what is the Benefit/Cost ratio for this equipment purchase? b. Based on the Benefit/Cost analysis should Metro Atlanta purchase the equipment?
If specific duty is $2 per dozen and ad valorem duty is 20%, find the total duty on 12 dozen padlocks valued at $650.
work on part C
which projects should be considered as the base alternative and the first-choice alternative.
K An analysis of accidents in a rural state indicates that widening a highway from 30 ft to 40 ft will decrease the annual accident rate from 1,270 to 660 per million vehicle-miles Calculate the average daily number of vehicles that should use the highway to justify widening on the basis of the following estimates: (1) the average loss per accident is $1,000, (ii) the cost of widening is $107,000 per mile (iii) the useful life of the widened road is 25 years; (iv) annual maintenance costs are 3% of the capital investment and (v) MARR is 12% per year. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year. Choose the correct answer below OA. The average daily number of vehicles is about 36 vehicles per day OB. The average daily number of vehicles is about 61 vehicles per day OC. The average daily number of vehicles is about 70 vehicles per day OD. The average daily number of vehicles is about 43 vehicles per day OE. The average daily…
You are considering an investment project with the financial information provided below. Suppose the company is most concerned about the impact of its price estimate on the project's rate of return. How would you address this concern? The break-even value of unit price is ?
Assume a pool of 115 people in an insurance pool (a group of people insured through community rating). It is estimated that a small number in the pool will have significant pre- existing conditions as indicated in the table. Based on the age of these 115 people, the insurance company estimates the following distribution of health care claims (which includes necessary profit and administrative costs of the insurance company). Number of Insured Antidipated Heath Costs/Year/Person $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000 $2,100 $2,200 $2.300 $2,400 $2,500 $2,700 $2,000 $2,900 $3,000 $3,100 $3.200 $3.300 $4,000 57,00 $10,000 Everyone joins the poal ad pays the necessary premum in the first year. The clams experience of the customers is faund to be generaly consstent with expeclations of the insurance company. A) What would be the premium In the third year if there is no inflation, based on the company's oxperience from the past year? B) If those customers who have anticipated…