When the consumption function becomes steeper,
What will be an ideal response?
the MPC rises.
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A decrease in price level will
A) shift the planned expenditures curve upward. B) cause a movement up along the planned expenditures curve. C) shift the planned expenditures curve downward. D) cause a movement down along the planned expenditures curve.
If a business is losing money on the goods it is producing, this indicates that
a. the business is producing the goods at the lowest possible cost. b. the resources used to produce the goods are too expensive and need to be subsidized in order to be used productively. c. the resources would be used more productively producing other things. d. the consumer values the goods highly relative to costs.
The main objective of a business in a market economy is
A. controlling costs. B. maximizing the production function. C. profit maximization. D. decreasing revenue.
Refer to the information provided in Figure 12.4 below to answer the question(s) that follow.
Figure 12.4There are two sectors in the economy, X and Y, and both are in long-run, zero-profit equilibrium at the intersections of S0 and D0.Refer to Figure 12.4. Assume consumer preference changes toward X and away from Y. Ceteris paribus, sector X will likely see ________ and sector Y will likely see ________.
A. capital outflow; capital inflow B. no change in capital flows; capital outflow C. capital inflow; capital outflow D. capital inflow; no change in capital flows