As disposable income decreases, consumption:
A. And saving both increase
B. And saving both decrease
C. Increases and saving decreases
D. Decreases and saving increases
B. And saving both decrease
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If a natural monopoly is allowed to set its price above its average total cost, then
A) the company makes an economic profit. B) the company incurs an economic loss. C) competitors will enter the market. D) the company will produce more than the efficient amount of output.
The real wage rate measures
a. nominal wages after taxes b. what workers are paid in terms of this year's dollars c. what workers are paid in terms of purchasing power d. what workers have available for spending after paying their bills e. the number of dollars earned by workers
Chausiku’s country has seen its production possibilities curve shift down and to the left over the past five years. Which of the following has most likely affected Chausiku’s country during this period?
a. discovery of a major oil field b. a prolonged drought c. expansion of the nation’s highway system d. implementation of universal health care
The consensus view
A. Incorporates only the monetarist perspective. B. Incorporates only the Keynesian perspective. C. Incorporates both the Keynesian and monetarist perspective. D. Ignores both the Keynesian and monetarist perspective.