Let "C = Ca + by" define the consumption function. The term "Ca" is known as
A) induced consumption. B) autonomous consumption.
C) the marginal propensity to save. D) the marginal propensity to consume.
B
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If the value of marginal product of a factor of production exceeds the price of the factor, the
A) firm should hire more of that factor. B) firm should hire less of that factor. C) firm is maximizing profits. D) firm should shut down.
Financial intermediation supports economic growth and development by bringing together numerous savers and investors in growing and increasingly complex markets
Indicate whether the statement is true or false
The supply-side effects of a reduction in taxes are the result of
a. increases in the disposable income of households accompanying reductions in tax rates. b. the stimulus effects of increases in government expenditures. c. increased attractiveness of productive activity relative to leisure and tax avoidance. d. reductions in interest rates that generally accompany expansionary fiscal policy.
If the government were to impose a fine of $4,000 for each unit of air-pollution released by a fertilizer plant, the policy would be considered
a. a subsidy. b. a regulation. c. a corrective tax. d. an application of the Coase theorem.