If a consumer is initially in equilibrium, an increase in money income will:
A. Move the consumer to a new equilibrium on a lower indifference curve
B. Move the consumer to a new equilibrium on a higher indifference curve
C. Make the slope of the consumer's indifference curves steeper
D. Have no effect on the equilibrium position
B. Move the consumer to a new equilibrium on a higher indifference curve
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Managers of profit centers earn more when their divisions
a. increase their sales and increase their costs b. decrease their sales and increase their costs c. decrease the costs of the components for which they are responsible d. increase the costs of the components for which they are responsible
If the spending multiplier is greater than 1.0, a $200 billion increase in autonomous investment will cause: a. equilibrium investment to increase by less than $200 billion
b. equilibrium investment to decrease by more than $200 billion. c. equilibrium real GDP demanded to increase by more than $200 billion. d. equilibrium real GDP demanded to decrease by less than $200 billion. e. equilibrium saving to decrease by more than $200 billion.
When a single individual performs all the steps involved in the production process he/she incurs:
a. the costs of labor division. b. the costs of being a generalist. c. the cost of specialization. d. the costs of over-utilization of resources.
One timing problem in using fiscal policy to counter a recession is the "recognition lag" that occurs between the
A. time the need for the fiscal action is recognized and the time that the action is taken. B. start of a predicted recession and the actual start of the recession. C. start of the recession and the time it takes to recognize that the recession has started. D. time fiscal action is taken and the time that the action has its effect on the economy.