When consumers decide to increase household debt, this action will
A. increase the amount consumed along a stable consumption schedule.
B. shift the consumption schedule upward.
C. decrease the amount consumed along a stable consumption schedule.
D. shift the consumption schedule downward.
Answer: B
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A profit-maximizing firm always
a. sells its output at P = MR. b. produces at the output at which MR = 0. c. hires labor until the MRP of labor = 0. d. produces every unit of output for which MR > MC.
The message of the ultimatum game is that:
A. people pursue self-interest and the good of the group suffers. B. people like to make threats. C. sometimes concerns of fairness top rational selfishness. D. people pursue self-interest and the good of the group is served.
Macroeconomics is distinguished from microeconomics by its concentration on
A. choices. B. the performance of national economies and ways to improve upon their performance. C. individual markets. D. the level of prices in specific markets.
The efficient market hypothesis states that:
A. markets currently contain an efficient amount of information for them to clear. B. markets currently contain all available information and correctly value instruments. C. when buyers and sellers act in their own best interest markets will be efficient. D. in order for markets to be efficient they need to be adequately regulated.