The relationship between planned real consumption expenditures of households and their current level of real disposable income is
A) the consumption function.
B) saving.
C) dissaving.
D) investment.
A
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The above table shows the total product of producing baseball hats. The average product of 3 workers is equal to
A) 1.67 baseball hats. B) 6.00 baseball hats. C) 12.78 baseball hats. D) 18.00 baseball hats.
The Irish production possibilities curve shifts to the left when there is
a. an increase in the Irish labor supply b. innovation in the production of Irish goods c. a civil war that destroys much of Ireland's resource base d. unemployment among Irish workers e. a choice among the Irish of more capital goods last period
Under free trade, a large country produces one million leather bags per year and imports another two million bags per year at the world price of $60 per bag. Assume the country imposes a specific tariff of $5 per bag. As a result, the per-unit price of leather bags decreases to $58 in the international market and the import of leather bags drops to 1.6 million. The domestic production, on the other hand, increases to 1.1 million. Following the imposition of the tariff, the domestic consumers pay a price of ________ for each bag.
A. $65 B. $63 C. $60 D. $58
Consider a Stackelberg duopoly with the following inverse demand function: P = 100 ? 2Q1 ? 2Q2. The firms' marginal costs are identical and are given by MCi = 2. Based on this information, the Stackelberg leader's reaction function is:
A. QL = 50 ? 0.5QF. B. QL = 49 ? 0.5QF. C. QL = 24.5 ? 0.5QF. D. None of the answers is correct.