Consumption expenditures decrease when ________
A) the real interest rate falls
B) disposable income increases
C) autonomous consumption increases
D) all of the above
E) none of the above
E
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What were the major reasons for the lack of sustained growth before modern times?
What will be an ideal response?
If a monopolistically competitive seller's marginal cost is $3.56, the firm will decrease its output if
A) its marginal revenue is less than $3.56. B) its marginal revenue is equal to $3.56. C) its marginal revenue is more than $3.56. D) its average total cost is equal to $4.00. E) Both answers B and D are correct.
If a monopsony finds that its MRP is greater than its MLC, it
a. is doing the right thing to maximize profits b. should hire fewer workers to increase profits c. should hire more workers to increase profits d. should pay the workers a lower wage e. should produce less output
In the graph, when disposable income is _______, saving is zero.
A. 0
B. 1000
C. 2000
D. 3000