If income is equal to total spending, then in a closed economy, it is equal to:
A. consumption plus investment spending.
B. savings plus investment.
C. savings minus investment.
D. consumption minus investment spending.
A. consumption plus investment spending.
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Workers earn more than half of the income generated by the production process.
Answer the following statement true (T) or false (F)
The monopolist's marginal revenue is less than price since
A) additional units can only be sold if the price is lowered on all units sold. B) the demand function is horizontal. C) average revenue is also less than price. D) average total cost is declining.
A tax burden falls more heavily on the side of the market that is less elastic
a. True b. False Indicate whether the statement is true or false
Refer to the diagram, in which S 1 and D 1 represent the original supply and demand curves and S 2 and D 2 the new curves. In this market:
A. the equilibrium position has shifted from M to K.
B. an increase in demand has been more than offset by an increase in supply.
C. the new equilibrium price and quantity are both greater than originally.
D. point M shows the new equilibrium position.