If the MPC equals 0.75, then
A) for every $100 increase in consumption, real Gross Domestic Product (GDP) increases by $75.
B) for every $100 increase in real Gross Domestic Product (GDP), saving increases by $25.
C) consumption is always more than real Gross Domestic Product (GDP).
D) for every $100 increase in real Gross Domestic Product (GDP), saving increases by $75.
B
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If firms monopolistically competitive firms are making an economic profit, as new firms enter the market, each of the existing firms' demand curve shifts ________, the marginal curve shifts ________, and the profit-maximizing quantity ________
A) leftward; leftward; decreases B) rightward; leftward; increases C) leftward; rightward; decreases D) leftward; leftward; increases
A consumer's indifference curves can never cross
Indicate whether the statement is true or false
The American Association of Retired Persons (AARP) provides checklists summarizing the voting and attendance records of legislators. Which of the following is true?
a. If the AARP's members were rational, it wouldn't have to do this. b. This policy is useless if AARP members are rationally ignorant. c. This policy is intended to reduce voters' rational ignorance by decreasing the cost of information. d. If AARP members read this information, their rational ignorance would be eliminated. e. If all voters in the nation read this information, their rational ignorance would be eliminated.
The process of adjustment to a new long-run equilibrium in a perfectly competitive industry is complete when
a. no firms want to enter or exit the industry. b. every firm has adjusted its production process to make the most efficient use of its resources. c. investors in the industry receive the standard economy-wide rate of return on their investments. d. All of the above are correct.