The ratio of the change in consumption to the change in disposable income is the
A. marginal propensity to save.
B. marginal propensity to consume.
C. average propensity to save.
D. average propensity to consume.
Answer: B
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Answer the following statement(s) true (T) or false (F)
1. The Robinson-Patman Act was designed to stop resale price maintenance. 2. It is possible for a firm engaging in predatory pricing to make a profit on the good even thought the price is set artificially low. 3. It is possible to avoid the prisoners' dilemma as long as the interaction is repeated and has a definite ending date. 4. Fair trade refers to the fact that retailers are free to set their price in the absence of resale price maintenance. 5. An attorney that finds a loophole in a law has formed a creative response to the law.
Dustin's copy shop can use four alternative plants. The figure above shows the average total cost curves for Plant 1 (ATC1), Plant 2 (ATC2), Plant 3 (ATC3), and Plant 4 (ATC4). Dustin's minimum efficient scale is
A) 2,650 copies per day. B) 6,000 copies per day. C) 4,000 copies per day. D) More information is needed to determine the minimum efficient scale.
Fred just purchased an expensive new refrigerator and is considering purchasing the overpriced warranty. In making his decision on the warranty, Fred ignores better ways that his money could be spent, including paying off high-interest credit card debt. According to prospect theory, the process that leads Fred to ignore the debt and buy the overpriced warranty is
A) framing bias. B) anchoring. C) mental accounting. D) confirmation bias.
Which of the following statements is true?
A. Both the debt and the deficit or surplus are flow measures. B. The debt is a flow measure and the deficit or surplus is a stock measure. C. The debt is a stock measure and the deficit or surplus is a flow measure. D. Both the debt and the deficit or surplus are stock measures.