Refer to the above figure. Line ACE is called
A. the savings function.
B. the 45-degree line.
C. the saving function.
D. the consumption function.
Answer: B
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The most accurate quantitative time measure is:
a. Self-report or diary method b. Recall method c. Observation method d. A combination of all of the above methods to allow for cross checks.
Oligopoly firms acting individually may seek to gain profits in which of the following ways?
a. By expanding levels of output and cutting prices b. By selling products that are distinctive in some way c. By having a mini-monopoly on a brand name d. By decreasing production and raising prices
If the price of a good rises by 10% and the percentage decrease in the total amount consumers spend on the good is 5%, then the good is
A. inelastic. B. elastic. C. unit elastic. D. perfectly inelastic.
Stock prices are
A) based more on the current profitability of firms than on their expected future profitability. B) based less on the current profitability of firms than on their expected future profitability. C) based equally on the current profitability of firms and on their expected future profitability. D) not based on the current profitability of firms or on their expected future profitability.