Economists refer to the simple relationship between consumption and disposable income as:
a. autonomous consumption.
b. the marginal propensity to consume.
c. the absolute disposable income hypothesis.
d. disposable income.
e. the consumption function.
e
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If the government wanted a tax to not burden consumers much, it would want to tax an industry with:
a. elastic supply and demand curves. b. inelastic supply and demand curves. c. inelastic supply and elastic demand. d. elastic supply and inelastic demand.
Which of the following conditions distinguishes monopolistic competition from perfect competition?
A. Number of sellers B. Freedom of entry and exit C. Perfect information D. Homogeneity of the product
Price discrimination means charging:
A. the same price to all buyers even if production costs are different. B. different prices for different products because production costs are different. C. different prices to different buyers for essentially the same good or service. D. higher prices to women and minorities.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C