A once-and-for-all jump in the price level would initially cause a(n)
a. upward shift in the consumption function.
b. upward movement along the consumption function.
c. downward shift in the consumption function.
d. downward movement along the consumption function.
c
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According to the graph shown, if the market is in equilibrium, total surplus is:
A. $30.
B. $20.
C. $50.
D. $60.
Which of the following is false?
a. The total product schedule shows the total amount of output generated as the level of the fixed input increases. b. The marginal product of any single input is the change in total product resulting from a small change in the amount of that input used. c. As the amount of a variable input is increased, the amount of other fixed inputs being held constant, a point ultimately will be reached beyond which marginal product will decline. This is called diminishing marginal product. d. A firm never knowingly allows itself to reach the point where the marginal product becomes negative.
The supply of hydro electric power:
a. can be varied infinitely in the short run. b. remains fixed in the long run. c. decreases with an increase in price in the short run. d. reduces in the future due to continuous consumption today. e. increases with an increase in price in the long run.
Foreign direct investment occurs when a company:
a. purchases foreign securities such as stocks and bonds. b. establishes foreign operating units. c. enters into a contractual agreement involving exchange of services and payments. d. engages in international trade. e. gives aid to a Third World country.