How can autonomous consumption be greater than zero when income is zero?
What will be an ideal response?
Autonomous consumption is the level of consumption independent of income. People with zero income still consume goods and services such as food, shelter, and medical care. This is possible through the use of savings or credit and is referred to as dissaving.
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The trade between countries is recorded in accounts called the balance of
A) U.S. official trade account. B) payments accounts. C) export and import accounts. D) currency accounts. E) international trade accounts.
One of the obstacles to efficiency is monopoly
Indicate whether the statement is true or false
Suppose that the government passes a law requiring households to increase savings 10% above previous levels. According to Solow's growth theory, in the short run
A) output per capita grows more rapidly. B) output per capita grows at the constant steady state rate, n. C) output per capita stays constant. D) None of the above.
Which of the following conditions hold true for both the perfectly competitive firm and the monopoly at the profit-maximizing output level?
A) MR = P B) MC = ATC C) MC = P D) MR = MC