Savings equal the difference between personal income and consumption.
Answer the following statement true (T) or false (F)
False
Savings equal the difference between disposable income and consumption.
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Assume the price of widgets increases by 22 percent and the quantity supplied increases by 27 percent as a result. The elasticity of supply coefficient is: a. greater than 1, implying that widgets are normal goods. b. less than 1, implying that widgets are inferior goods. c. greater than 1, implying that supply is elastic
d. greater than 1, implying that supply is inelastic.
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.
Which of the following statements is true?
A. When marginal cost is below average cost, average cost rises; when marginal cost is above average cost, average cost falls. B. The marginal product is the output per unit of a variable input. C. Average variable cost and average fixed cost are U-shaped curves. D. When marginal productivity of a variable input is falling then marginal costs of production must be rising.
If firms in a monopolistically competitive industry are operating with economic losses, over time we would see
A) firms alter their advertising rates until they made at least normal profits. B) some firms exiting the industry, causing the market supply curve to shift to the left, raising price. C) some firms exiting the industry, causing the demand curves of the remaining firms to shift to the right. D) the firms working together to increase price and everyone's profitability.