Economic theory
a. is a set of definitions, postulates, and principles assembled in a manner that helps make cause-and-effect relationships clear in economics.
b. is like a guidebook in that it points out what to look for.
c. provides economists with a common language and way of thinking about how the world works.
d. is all of the above.
D
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Where the consumption function intersects the 45-degree line
A) consumption will equal only autonomous consumption. B) the average propensity to consume is 0.5. C) savings will be negative. D) saving will be zero.
What was the original intent of the Federal Reserve Act of 1913?
What will be an ideal response?
The GDP of a country can be derived by summing the:
a. expenditures on final goods and services produced domestically during the year. b. payments to employees and owners of capital resources and then subtracting depreciation and indirect business taxes. c. market value of all goods and services produced domestically during the period and then subtracting net exports from that figure. d. income payments to the resource suppliers and net exports.
Demand and marginal revenue curves are downward-sloping for monopolistically competitive firms because
A. product differentiation allows each firm some degree of monopoly power. B. there are a few large firms in the industry and they each act as a monopolist. C. mutual interdependence among all firms in the industry leads to collusion. D. each firm must take the market price as given.