Which of these equations is correct?
A. APC - APS = 1
B. MPC + APS = 1
C. MPC + MPS = 1
D. 1 + MPC = MPS
C. MPC + MPS = 1
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The Fed's inability to instantaneously observe changes in inflation and economic growth result in
A) information lag. B) impact lag. C) policy lag. D) jet lag.
If a firm in an industry experiences very high fixed costs and constant marginal cost, it is a good candidate for a natural monopoly
Indicate whether the statement is true or false
Other things equal, the likelihood that a country will experience a relatively-high level of income is greater if the country
a. pursues inward-oriented policies. b. has natural seaports. c. minimizes the role of the courts in its economy. d. enacts policies to encourage consumption and discourage saving.
Because marginal cost is always ________ in the short run, total variable cost always ________ when output increases.
A) positive; increases B) positive; decreases C) negative; increases D) negative; decreases