A decrease in price will lead to an increase in demand.
a. true
b. false
Ans: b. false
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The consumption function will shift upward if real asset and money holdings:
A. increase, if people expect prices to increase, if interest rates decrease, and if taxes decrease. B. increase, if people expect prices to increase, if interest rates increase, and if taxes increase. C. increase, if people expect prices to increase, if interest rates increase, and if taxes decrease. D. decrease, if people expect prices to decrease, if interest rates decrease, and if taxes decrease.
The payments in return for labor and capital are _____, respectively.
a. ?profit and rent b. ?rent and wages c. ?interest and profit d. ?wages and interest e. ?profit and wages
A higher rate of saving at the national level will, in the long-run ________
A) cause a decrease in levels of capital and output B) have no effect on levels of capital and output C) lead to an increase in population growth D) cause an increase in levels of capital and output
When it is cheaper for one firm to produce a number of different commodities together than it is for a group of small firms to produce those commodities, ____ exist(s).
A. economies of scale B. economies of scope C. diminishing marginal returns D. marginal cost pricing