In the graph for the consumption function, the 45-degree line
A) contains only a consumption component.
B) represents both planned consumption and planned investment.
C) shows various combinations where planned consumption equals real disposable income.
D) reflects a decreasing APC as real disposable income rises.
C
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If the individuals in a group of consumers have identical tastes, then the group can be treated as if it behaved as a singe representative consumer.
Answer the following statement true (T) or false (F)
A budget deficit will be most inflationary if the aggregate
A. demand curve is very steep. B. demand curve is very flat. C. supply curve is very flat. D. supply curve is very steep.
A shark repellent activity is designed to __________ in order to secure the position of the ___________
a. thwart competitors; shareholders b. protect managers; suitors c. lure white knights; managers d. thwart takeovers; managers e. thwart takeovers; shareholders
Consider the production possibilities curve for a country that can produce sweaters, apples (in bushels), or a combination of the two.
A. Which point(s) on the graph is (are) efficient production possibilities? B. Which point(s) on the graph show unemployment of resources? C. What is the opportunity cost of moving from point R to point Q? D. What is the opportunity cost of moving from point T to point R?