A given change in disposable income would have the greatest effect on aggregate demand with which of the following marginal propensities to consume?
a. 0.4
b. 0.6
c. 0.8
d. 0.2
c
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There are many industries in the United States where only a few firms compete. These industries
a. have low Herfindahl-Hirschman Indexes b. are considered to be oligopolies c. are considered to be monopolistically competitive d. have four-firm concentration ratios that approach zero e. all practice price leadership
The accompanying table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities. Number of EmployeesTotal DonationsAverage DonationsTotal Labor CostsAverage Labor Costs1$30,000 $8,0002$42,426 $17,000 3 $17,321$27,000 4$60,000 $9,5005 $13,416$50,000 The Chair of the Economics Department at State U says that fundraising employees should be hired as long as their marginal benefit exceeds their marginal cost. If the University follows this advice, then ________ employee(s) will hired, and the net benefit (total donations minus total labor costs) will be ________.
A. 1; $22,000 B. 2; $25,426 C. 2; $3,476 D. 3; $25,426
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.
A consumer will consume the combination of goods at the crossing point of a budget line and indifference curve.
Answer the following statement true (T) or false (F)