At the point at which planned real consumption spending is equal to real disposable income
A. the consumption function intersects the 45-degree line.
B. the consumption function intersects the savings function.
C. the consumption function is below the 45-degree line.
D. the consumption function is above the 45-degree line.
Answer: A
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If a producer wants a monopoly with a legal barrier to entry, how can this be done?
i. The producer can spend funds lobbying to attain passage of the legal barrier to entry. ii. The producer can purchase an existing monopoly. iii. The producer can make rent seeking expenditures. A) i and ii B) i and iii C) ii and iii D) i, ii, and iii E) None of the above are ways to acquire a monopoly with a legal barrier to entry.
Will a minimum wage lead to a larger increase in the unemployment rate if the labor demand curve is relatively price elastic or relatively price inelastic?
Refer to the information provided in Figure 32.2 below to answer the question(s) that follow.
Figure 32.2Refer to Figure 32.2. According to the ________ economists, under rational expectations an expected decrease in taxes would not change AD or AS.
A. Keynesian B. the new classical C. monetarist D. none of the above
A monopolist with the ability to use price discrimination produces more to maximize profit than it would if it could charge only one price.
Answer the following statement true (T) or false (F)