Suppose autonomous consumption decreases. This reduction in autonomous consumption will cause which of the following to occur?
A) The consumption function shifts down.
B) The consumption function shifts up.
C) The consumption function becomes steeper.
D) The consumption function becomes less steep.
A
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Indicate whether the statement is true or false
If firms in a monopolistically competitive market are earning negative economic profits, the demand curve of a single firm will likely:
A. shift right, as other firms enter the industry. B. shift left, as other firms enter the industry. C. shift left, as other firms leave the industry. D. shift right, as other firms leave the industry.
A market for pollution rights can be expected to:
A. produce a shortage of pollution. B. eliminate all pollution. C. encourage potential polluters to increase emissions. D. provide potential polluters with a monetary incentive to reduce emissions.
National income is derived from gross domestic product by
A) subtracting retained earnings from gross domestic product. B) adding personal taxes and depreciation to gross domestic product. C) subtracting depreciation from gross domestic product. D) adding personal income and transfer payments to gross domestic product.