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.
Ans: C) shows various combinations where planned consumption equals real disposable income.
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People's willingness to buy the PC or Mac format of computer software depends on how popular the software format is among other consumers. This is an example of
A) a cartel. B) an opportunity cost. C) a network effect. D) the prisoners' dilemma.
The most common form of business organization in the United States is the sole proprietorship
a. True b. False
If the elasticity of supply of a good is equal to 0.62, then we can say that the supply curve for the good is: a. elastic
b. inelastic. c. perfectly elastic. d. perfectly inelastic.
When a perfectly competitive firm or a monopolistically competitive firm is making zero economic profit,
A. no firms will want to enter or exit. B. some firms will want to leave. C. some firms will want to enter. D. market demand shifts to the left.