Assume a consumption function of C = 90 + .75Y. The saving function for this economy is equal to
A) 90 + .25Y.
B) -90 + .75Y.
C) -90 + .25Y.
D) 90 + .75Y.
C
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Why do accountants and economists calculate a firm's cost and profit in different ways?
What will be an ideal response?
Monopolies are inefficient because they (i) eliminate barriers to entry. (ii) price their product at a level where marginal revenue exceeds marginal cost. (iii) restrict output below the socially efficient level of production
a. (i) and (ii) only b. (ii) and (iii) only c. (iii) only d. (i), (ii), and (iii)
If a manager has the right to fire, promote, and compensate an employee, the employee obviously has an economic incentive to comply with the manager's wishes. Which of the following potential sources of power is described by this statement?
A. Formal authority B. Control of information C. Control of budgets and resources D. Having friends and allies
According to the textbook, Monetary policymaking is most accurately described as:
A. both an art and a science B. superior to other policies, since it is conducted by economists. C. a science due to detailed models used D. an art as human judgments are necessary