A reduction in the marginal propensity to save from .4 to .3 will cause
A) the ZZ line to become steeper and a given change in autonomous consumption (c0 ) to have a smaller effect on output.
B) the ZZ line to become steeper and a given change in autonomous consumption (c0 ) to have a larger effect on output.
C) the ZZ line to become flatter and a given change in autonomous consumption (c0 ) to have a smaller effect on output.
D) the ZZ line to become flatter and a given change in autonomous consumption (c0 ) to have a larger effect on output.
C
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The 3 key economic questions include all of the following EXCEPT
A) "how do we produce these products?" B) "where should these products be produced?" C) "who consumes the products?" D) "what products do we produce?"
One way for a company like McDonalds to overcome principal-agent problems is to advertise for franchisees
a. True b. False
When a country has the ability to produce a good or service at a lower opportunity cost than others, they:
A. have an absolute advantage. B. have a comparative advantage. C. are free-traders. D. should remain self-sufficient.
Table 7.2 contains price, demand, and cost data for the Capri Theater, the only first-run movie theater in a small town. What is its profit from non-students under the single price policy?
A. $300 B. $360 C. $450 D. $540