If people's real assets increase, then the:
A. economy will move to the right along the existing consumption function.
B. economy will move to the left along the existing consumption function.
C. consumption function will shift down.
D. consumption function will shift up.
Answer: D
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All else equal, a decrease in the demand for oranges will lead to a(n) ________ in equilibrium price and a(n) ________ in equilibrium quantity.
A. decrease; increase B. decrease; decrease C. increase; increase D. increase; decrease
When we have an optimum resource mix for the firm,
A. the MRP of land = the price of land. B. the MPP of land = the price of land. C. Both choices are true. D. Neither of the choices are true.
If the marginal cost curve is below the average total cost curve, average total cost must be ____.
Fill in the blank(s) with the appropriate word(s).
If real GDP declines in a given year, nominal GDP ________.
A. must also be increasing B. may either rise or fall C. must also be declining D. is likely to remain constant