In the consumption function, consumption is caused by changes in the:
a. price level.
b. level of disposable income.
c. interest rate.
d. level of investment.
e. level of real assets.
b
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Economists use game theory to analyze strategic behavior, which takes into account
A) monopoly situations. B) the expected behavior of others and the recognition of mutual interdependence. C) the price-taking behavior of oligopolists. D) non-price competition. E) that increased demand decreases the market power of the firms in the market.
Why is price discrimination legal but not discrimination based on race or gender?
A) because price discrimination enables firms to increase output and employment, but race- or gender-based discrimination reduces employment B) because price discrimination reduces deadweight loss, but discrimination based on race or gender increases deadweight loss C) because price discrimination involves charging people different prices based on their willingness to pay rather than on the basis of arbitrary characteristics D) because price discrimination increases profits and therefore tax revenues for the government, but discrimination based on race or gender reduces tax revenues
Going to college to get more knowledge and skills is considered to be an increase in
A) physical capital. B) consumption. C) human capital. D) net exports.
In the summer of 1993, there were devastating floods in the midwestern portion of the United States where corn is produced. What effect do you think these floods had on the price of corn and beef? What do you think happened to Canadian corn farmers?