Other things equal, increasing home prices tend to
A. force homeowners to spend less than they earn.
B. increase the likelihood that homeowners will default on their mortgages.
C. allow homeowners to spend more than they earn.
D. leave homeowners' ability to spend unaffected.
Answer: C
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Use the following consumption schedule to answer the next question. 
The marginal propensity to consume is represented by
A. GE/AB. B. EF/BE. C. GF/BE. D. DE/AB.
For a given pair of production outputs, the degree of economies of scope:
A) is constant across different output levels. B) only increases as the level of output increases. C) may increase or decrease with output. D) will always tend to zero as output becomes very large.
A firm can maximize profit by hiring labor up to the point where
a. the marginal revenue product equals the wage rate b. the marginal product equals marginal cost c. total revenue equals total cost d. the marginal revenue product equals marginal product e. the marginal revenue product is zero
Costs that require a firm to spend money are considered:
A. explicit costs. B. fixed costs. C. implicit costs. D. variable costs.