The consumption function is the relationship between
A) real consumption spending and real taxes.
B) real consumption spending and investment spending.
C) real consumption spending and real disposable income.
D) real consumption spending and real saving.
Ans: C) real consumption spending and real disposable income.
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One reason that firms hire labor at the point where w = MPN is
A) if w < MPN, the cost (w) of hiring additional workers exceeds the benefits (MPN) of hiring them, so they should hire fewer workers. B) if w > MPN, the cost (w) of hiring additional workers is less than the benefits (MPN) of hiring them, so they should hire more workers. C) if w < MPN, the cost (w) of hiring additional workers equals the benefits (MPN) of hiring them, so they have the right number of workers. D) if w > MPN, the cost (w) of hiring additional workers exceeds the benefits (MPN) of hiring them, so they should hire fewer workers.
The Fifth Amendment of the Bill of Rights of the U.S. Constitution states that
A) private property shall not be taken except for public use and with compensation. B) Americans have the right to bear arms. C) the government can undertake any activity that is favored by the majority of citizens. D) the freedom of speech of Americans cannot be violated.
Which of the following is true about a differentiated-product Bertrand duopoly?
A. Firm 1 and firm 2's reaction functions are downward sloping. B. Firm 1 and firm 2's reaction functions are upward sloping. C. In a differentiated-product Bertrand duopoly neither firm has a reaction function. D. Firm 1's reaction function is downward sloping but firm 2's reaction function is upward sloping.
Which of the following products comes closest to having a perfectly inelastic demand?
A) gasoline B) cholesterol medication in general C) iPhones D) bus rides