The difference between the MPC and the APC is that the MPC is the
What will be an ideal response?
change in consumption divided by change in income, whereas the APC is total consumption divided by total income.
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Throughout the 1980s, the Federal Reserve
a. primarily targeted M1. b. primarily targeted M2. c. returned to targeting the federal funds rate. d. began targeting inflation.
Refer to the graph shown. In equilibrium, total surplus is equal to:
A. 1,200. B. 1,400. C. 600. D. 2,000.
The mutual interdependence that characterizes oligopoly arises because:
A. the products of various firms are homogeneous. B. the products of various firms are differentiated. C. each firm in an oligopoly depends on its own pricing strategy and that of its rivals. D. the demand curves of firms are kinked at the prevailing price.
Which of the following is a positive economic statement?
A) The standard of living in the United States is too low. B) If the price of beef falls, a larger quantity of it will be bought. C) The government should implement a national consumption tax. D) The U.S. government should increase regulations on the banking industry.