The relationship between income and consumption illustrated in the figure above is
A) positive and linear.
B) positive and nonlinear.
C) negative and linear.
D) negative and nonlinear.
A
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If firms in a monopolistically competitive industry experience short-run losses
A) some firms would like to exit the industry but find they cannot. B) firms increase prices further, until they make at least a normal return. C) firms increase advertising spending to increase demand, until they make at least a normal return. D) some firms exit the industry, causing the demand curves for the remaining firms to shift to the right until they earn a normal profit.
The phenomenon that explains the interdependence of water resources and the natural movement of water from the atmosphere to the surface, to beneath the ground, and back to the atmosphere is the
a. estuarial cycle c. hydrologic cycle b. runoff process d. watershed progression
The first, second, and third workers employed by a firm add 24, 18, and 9 units to total product respectively. Therefore, we can conclude that:
A. marginal product of the third worker is 9. B. the third worker has to work with poorer-quality tools and raw materials. C. the firm will not want to hire more than three workers. D. the first worker puts forth more effort than the second and third workers.
In which of the following situations will market clearing price increase and the equilibrium quantity decrease?
A) an increase in demand with no change in supply B) an increase in supply with no change in demand C) a decrease in supply with no change in demand D) a decrease in demand with no change in supply