If the wage increases, the isocost line will
A) stay the same.
B) shift outward in parallel fashion.
C) rotate inward around the point where only capital is employed in production.
D) shift inward in parallel fashion.
C
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Given a consumption function of C = $25 + 0.75YD, the average propensity to consume equals 1 when disposable income equals
A. $75. B. $25. C. $100. D. -$300.
If the market price is $5 and a perfectly competitive firm is producing 1,200 units and the marginal cost to produce the 1,200th unit is $4.53, which of the following is true?
A) The difference between marginal revenue and marginal cost (MR - MC) for the 1,200th unit is positive. B) The firm is maximizing profit. C) The firm should decrease production to maximize profit. D) The difference between marginal revenue and marginal cost (MR - MC) for the 1,200th unit is negative.
Equilibrium quantity is _____.
A problem with the operation of the gold standard in the world economy was that
A) it involved too much government intervention in the economy. B) the world economy was subject to too much inflation. C) a country did not have control of its domestic monetary policy. D) it caused the Great Depression.