If consumption is $13,000 when income is $12,000, and consumption increases to $15,000 when income increases to $15,000, the MPS is
A. -0.15.
B. 0.
C. 0.33.
D. 0.40.
Answer: C
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Suppose this year Angola borrows $100 million from foreign countries, while it lends $15 million to other countries. Angola definitely is a
A) net borrower. B) net lender. C) creditor nation. D) debtor nation.
Suppose that at the current level of output, price = $12, MC = $14, AVC = $7, and ATC = $9. Which of the following is TRUE?
A) The firm should decrease output. B) The firm should shut down. C) The firm should increase output. D) The firm should maintain the current level of output.
The industrial organization economics perspective locates the source of competitive advantage at the
a. Individual firm level b. Industry level c. Both a and b d. None of the above
If the demand curve faced by a firm is horizontal, then the firm is ________ and a ________.
A. perfectly competitive; price taker B. perfectly competitive; price maker C. a monopoly; price taker D. a monopoly; price maker