All of the following are understandable economic reasons for reductions in consumer spending on durable goods except
A) economic uncertainty.
B) increases in personal income taxes.
C) declines in wealth levels.
D) falling interest rates.
D
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Real business cycles could be a result of
A) shocks to the aggregate supply side of the economy. B) abrupt changes in monetary policy. C) increases in the budget deficit and national debt. D) discretionary fiscal policy.
In the figure above, what is the MPC?
A) 0.75 B) 1.00 C) 0.50 D) 0.80 E) 0.90
If an average cost pricing rule is imposed on the natural monopoly shown in the figure above, then consumer surplus will be
A) $0. B) $8 million. C) $9 million. D) $16 million.
Predictions of stock prices by stock market analysts
A. usually improve on simple extrapolation of past trends. B. are good both in the short term and in the long term. C. are poor since Wall Street does not pay enough to attract the best analysts. D. are poor because of randomness.