If consumption spending increases from $758 to $767 billion when disposable income increases from $912 to $927 billion, it can be concluded that the marginal propensity to consume is:
a. 0.4
b. 0.5
c. 0.7
d. 0.6
Ans: d. 0.6
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When making decisions on pricing and other behaviors, oligopolistic firms must take into account the actions of other firms
a. True b. False Indicate whether the statement is true or false
The level of Social Security benefits is adjusted each year based on the ________________ Price Index.
a. Consumer b. Production c. Personal d. Purchasing
If there are constant returns to scale, the production function can be written as
a. xY = 2xAF(L, K, H, N). b. Y/L = A F(xL, xK, xH, xN). c. Y/L = A F( 1, K/L, H/L, N/L). d. L = AF(Y, K, H, N).
Suppose that initially, the equations for demand and supply are Qd = 48 ? 4P and Qs = 4P ? 16, respectively. If the quantity supplied decreases by 4 at every price (so that the supply curve shifts to the left), the equilibrium price will change from:
A. $8.50 to $7.50. B. $8 to $8.50. C. $8 to $7.50. D. $7.50 to $8.50.