The consumption function assumes that _____
Fill in the blank(s) with the appropriate word(s).
factors other than disposable income affect consumption, but those are held constant along the consumption function.
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In a housing market with a rent ceiling set below the equilibrium rent, as time passes the supply of apartments
A) decreases. B) increases. C) does not change. D) becomes fixed by the government. E) increases while the demand for apartments decreases.
The figure above shows the market for cotton in Georgestan. The government regulates the market with a production quota set at 8 million pounds per year. The introduction of the quota has
A) not affected the level of cotton production in Georgestan. B) increased the production of cotton in Georgestan by 8 million pounds. C) decreased the production of cotton in Georgestan by 4 million pounds. D) decreased the production of cotton in Georgestan by 8 million pounds.
Refer to Table 9-11. Prior to trade, what was the opportunity cost to produce 1 clock in Denmark?
A) 1/6 of a hat B) 1/2 of a hat C) 2 hats D) 6 hats
Ed's construction company has the following short-run cost function: q3 - 10q2 + 36q
a. What level of output will minimize the average cost? What is the AC at this point? b. Does the production process indicate diminishing returns? How can you tell?