Keynes's absolute income hypothesis asserts that consumption
a. increases as income increases, but at a constant rate
b. decreases as income increases, but at a constant rate
c. increases as income decreases, but at a constant rate
d. increases as income increases, but at a decreasing rate
e. decreases as income increases, but at an increasing rate
D
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A demand curve with unit elasticity can never touch either the vertical or horizontal axes.
Answer the following statement true (T) or false (F)
A Federal Reserve repurchase agreement involves
A) an agreement by a bank to repay a discount loan on a specific day. B) an agreement by a dealer to buy back securities she has sold to the Fed. C) an agreement between the Fed and the Treasury for the Fed to purchase a specified amount of Treasury securities. D) an agreement by a commercial bank to make a loan to another bank in the federal funds market.
As concentration in an industry increases, the value of the Herfindahl index falls
a. True b. False
You have one free movie to give away. Susie Wong would receive 75 units of utility from the pass while Ralph Zilda would get 90 units of utility from the pass. Movie tickets sell for $8 at the theater. You want to create the most satisfaction possible by giving away the pass. Who should the movie be given to?
a. Susie because her current utility is lower. b. Ralph because he will receive the most total utility. c. Ralph because his marginal utility per dollar is higher. d. Not Susie because her marginal utility is lower. e. There is not enough information to decide.