If the marginal propensity to consume (MPC) is positive and less than one, an increase in disposable income will _____.
Fill in the blank(s) with the appropriate word(s).
increase both consumption and saving
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An economic model is
A) a generalization that summarizes all the normative assumptions we make about a particular issue. B) a description of some aspect of the economic world that includes only those features of the world that are needed for the purpose at hand. C) a statement that describes how the world should be. D) a collection of facts that describe the real world.
Compare and contrast the Bertrand and Cournot models of oligopoly. Your discussion should include assumptions made, goals of the firms and the resulting outcomes.
What will be an ideal response?
The following is not an example of adverse selection
a. you lock your garage when you have expensive workshop tools b. you are less careful when you buy a more expensive car c. Individuals tend to gamble more with their money when the future is certain d. you only go swimming when the lifeguard is on duty
Which of the following (if any) is not a factor affecting the profit performance of firms:
a. differential risk b. innovation c. managerial skills d. existence of monopoly power e. all of the above are factors