You are given the following consumption function C = 50 + .80YD. What is the amount of autonomous consumption expenditures?
A) 75
B) 100
C) 5
D) 50
D
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When a U.S. company shifts its call-center operations overseas to reduce costs, it is applying the economic concept of
A) using assumptions to simplify. B) thinking at the margin. C) comparative advantage. D) diminishing returns.
A natural monopoly exists when:
A. several formerly competing producers merge to become the only firm in an industry. B. unit costs are minimized by having one firm produce an industry's entire output. C. minimum efficient scale is attained at a small level of output. D. short-run average total cost curves are tangent to long-run average total cost curves.
If ________ equilibrium output ________, the price level decreases.
A. actual; exceeds potential aggregate output B. potential; is below actual aggregate output C. potential; is equal to actual aggregate output D. actual; is below potential aggregate output
Under the gold standard, if gold was flowing from Spain to the United States, the money supply in the United States would increase and U.S. interest rates would decrease.
Answer the following statement true (T) or false (F)