Which of the following would cause the consumption function to shift down?
a. A decrease in disposable income
b. A decrease in taxes
c. An increase in taxes
d. An increase in the marginal propensity to consume
e. None of the above
C
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Adam Smith’s discussion of the production in a pin factory illustrates the law of comparative advantage.
Answer the following statement true (T) or false (F)
International specialization and trade according to the principle of comparative advantage is mutually beneficial for all economies involved
a. True b. False Indicate whether the statement is true or false
If a firm's managers inappropriately decide to operate where total revenue is maximized, they will continue to increase output
a. as long as marginal revenue exceeds marginal cost b. as long as marginal cost exceeds marginal revenue c. as long as the total revenue curve is above zero d. as long as the marginal revenue curve is above the horizontal axis e. until the total revenue curve intersects the total cost curve
The Federal Reserve System is owned by:
A. federal government agencies such as the Treasury. B. the Congress of the United States. C. the banks that are members of the Federal Reserve System. D. anyone who buys stock over the counter.