If high incomes inspire more saving than low incomes ________
A) the average propensity to consume falls as income rises
B) the marginal propensity to consume rises as income rises
C) autonomous consumption falls as income rises
D) the average propensity to consume rises as wealth rises
A
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During World War II, Hitler would often order his army to hold a particular town or river “at all costs.” Was this rational? If so, explain. If not, indicate which economic idea it violated.
What will be an ideal response?
If the natural monopoly shown in the figure above is unregulated, then consumer surplus will be
A) $0. B) $4 million. C) $8 million. D) $16 million.
A bond is a form of
A) dividend. B) debt. C) equity. D) stock.
What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce steamed milk, which is used to make lattés, and scientists discovered that lattés cause heart attacks?
a. Both the equilibrium price and quantity would increase. b. Both the equilibrium price and quantity would decrease. c. The equilibrium price would decrease, and the effect on equilibrium quantity would be ambiguous. d. The equilibrium quantity would decrease, and the effect on equilibrium price would be ambiguous.