Which of the following lines has a slope equal to the marginal propensity to consume?
a. The demand for loanable funds curve
b. The labor demand curve
c. The consumption function
d. Inventory line
e. The 45-degree line
C
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Why should anyone bother to study perfect competition since it seldom or never exists in reality?
What will be an ideal response?
Suppose that in the absence of trade, the U.S. price for bicycles was higher than the world price for bicycles. Would allowing international trade, mean that the U.S. would import or export bicycles? Who in the U.S. would benefit and who would lose with a free trade policy, and would the gains be greater than the losses?
A total product curve shows the
a. aggregate output of many firms in an industry. b. amount of product consumers will take off the market. c. maximum amount of product that it is technically possible to produce. d. relationship between units of inputs and total output.
With trade, countries can consume combinations of goods beyond their production possibilities frontier
a. True b. False Indicate whether the statement is true or false