The part of consumption that is independent of disposable income is called
A) autonomous consumption. B) fixed consumption.
C) automatic consumption. D) personal consumption.
A
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Under conditions of perfect competition, marginal revenue
a. exceeds average revenue. b. is less than average revenue. c. always exceeds marginal cost. d. equals average revenue.
When mismatch unemployment characterizes an economy
A) monetary and fiscal policies to raise AD are the appropriate government action. B) only monetary policy will be effective. C) monetary and fiscal policies to raise AD are not the appropriate government action. D) only general (not specific) fiscal policy will be effective.
Assume that college-educated labor and high school-educated labor are complements in production. That is, the two types of labor work together, so that an increase in the quantity of either type increases the productivity of the other type of labor
Is this consistent with the observed increase in the college wage premium?
The slope of an isoquant tells us
A) how much output increases when both inputs are increased. B) the increase in MPL when capital increases. C) the decrease in capital necessary to keep output constant when labor increases by one unit. D) the decrease in capital necessary to keep MPL constant when labor increases by one unit.