The average propensity to save (APS) is
A. the percentage of real disposable income saved.
B. the percentage of additional real disposable income that will go toward real saving.
C. the rate at which real savings changes over time.
D. the difference between the amounts of real disposable income consumed and saved.
Answer: A
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When the principle of comparative advantage determines trade, then a country will
A) specialize only in that good with the highest opportunity cost. B) specialize only in goods with the lowest opportunity costs. C) specialize only in that good where output is less per worker hour than another country. D) specialize only in that good where production costs are more than average total costs.
The theory of the kinked demand curve is that
A. although the firm sells a differentiated product, too many competitors exist to make it worthwhile speculating on responses to the firm’s behavior. B. freedom of entry will reduce profits to zero. C. a firm’s competitors will follow it in a price decrease but not follow it in a price increase. D. firms are all seeking the position of joint profit maximization.
The demand function for Pandora bracelets is Q = 850-4P. Where P is the price of the good and Q is the quantity demanded. If the price of the bracelet increases from €100 to €150, which of the following statements is true:
(a) Quantity demanded decreases by 50 units. (b) Quantity demanded decreases by 300 units. (c) Quantity demanded decreases by 200 units. (d) Quantity demanded decreases by 100 units.
A grocery store with few choices is found is most likely found in a nation with a market economy
a. true b. false