The figure above shows a nation's consumption function. If disposable income is $2 trillion, then the MPC is ________ and saving is ________
A) negative; positive
B) positive; zero
C) positive; negative
D) positive; positive
E) negative; negative
C
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As an economy moves down along a straight line production possibilities frontier, what happens to the opportunity cost of producing the good on the horizontal axis?
A) It remains constant. B) It decreases. C) It increases. D) Above the midpoint it decreases until it equals 1 at the midpoint and then it increases. E) None of these depicts what happens to opportunity cost.
Kellogg's and General Mills are two of the dominant breakfast cereal manufactures in the U.S. Each firm can either sign or not sign an exclusive contract with an Olympian gold-medal athlete to appear on the cover of a cereal box
If both companies sign an athlete, they will each make $5 million in economic profit. If only firm signs, they earn $8 million in economic profit and the other firm incurs an economic loss of $1 million. If neither firm signs, they break even. Which of the following pairs of payoffs would NOT appear together in a square of the payoff matrix? A) $5 million; $5 million B) $0 million; $0 million C) $8 million; $5 million D) -$1 million; $8 million
Consumer equilibrium exists when the marginal utility per dollar of expenditure is the same for all goods and services
a. True b. False Indicate whether the statement is true or false
Which of the following shifts the aggregate demand curve rightward?
A) a decrease in government expenditure on goods and services B) a decrease in consumption C) an increase in investment D) a decrease in net exports