For a renter, the income effect of an increase in apartment rents will
a. have a greater effect than the income effect of an increase in the price of chewing gum
b. have no impact on the demand curve for apartments, because everything except price is assumed constant
c. have less of an effect than the income effect of an increase in the price of chewing gum
d. be almost negligible, because housing is a necessity
e. occur only when income increases
A
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According to Keynes, the least variable component of aggregate expenditures is
a. consumption. b. inventories. c. total investment. d. imports
A monopolized market is characterized by:
a. a sole seller of a product for which there are few suitable substitutes. b. very strong barriers to entry. c. a single firm facing the market demand curve. d. all of these.
In the Keynesian aggregate expenditures model, "aggregate expenditures" refer to:
a. the amount of GDP that could be produced if unemployment were zero. b. the combined expenditures of consumers, businesses, governments, and foreigners (net exports). c. the amount of demand for consumer goods that would arise if all citizens had all the income they wanted. d. consumer spending measured in constant prices.
Suppose an industry has 100 firms, each with supply curve P = 50 + 10Q. Furthermore, suppose the market demand curve is given by P = 200 - 0.9Q. How many units of output will be produced by a firm operating in this market with a MC = 130Q?
A. 5 B. 0.70 C. 2 D. It is impossible to answer with the information given