When investment increases, there is usually no impact on household income.
Answer the following statement true (T) or false (F)
False
An increase in investment leads to an increase in income, which in turn leads to an increase in consumption consequently leading to an outward shift of the AD curve.
You might also like to view...
The colony of Georgia was established in 1732 . During the colony's early years,:
a. each arriving settler received a 50-acre farm. b. cotton plantations were the primary source of income. c. the slave population assisted free colonists in defending the Georgia-Florida border. d. the slave population exceeded the free population. e. All of the above.
If labor is the only variable input, a firm's labor demand curve is
a. labor's marginal product curve b. the upward-sloping portion of its marginal revenue product of labor curve c. the downward-sloping portion of its marginal revenue product of labor curve d. the marginal revenue product of labor curve above the reservation wage rate e. the marginal revenue product of labor curve above the average variable cost curve
Schleppsi, a soft drink maker, is a monopsonist in the county where it manufactures its product. Suppose the total labor cost per week to the firm is $35,000 with 99 workers and the total labor cost with 100 workers is $36,000 . What will the weekly wage rate be if Schleppsi hires the 100th worker?
a. $35 b. $36 c. $100 d. $350 e. $360
Hi Phi Sound Unlimited has a monopoly over the installation of surround sound systems. If Hi Phi Unlimited's total revenue from installing 15 sound systems is $30,000 and its total revenue from installing 18 sound systems is $33,000, what is the marginal revenue of the eighteenth sound system?
A. -$3,000 B. $1,000 C. $1,500 D. $3,000