The most important factor that influences total spending is
a. the interest rate
b. real wealth
c. expectations regarding future income
d. the income tax rate
e. real disposable income
E
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Consumer debt increases. What is the impact on aggregate expenditures and income?
A) Both increase. B) Both decrease. C) Aggregate expenditure increases and income decreases. D) Aggregate expenditure decreases and income increases.
Suppose your firm operates in a perfectly competitive market and decides to double its output. How does this affect the firm's marginal profit?
A) Marginal revenue and marginal cost increase B) Marginal revenue increases but marginal cost remains the same C) Marginal cost may change but marginal revenue remains the same D) Marginal revenue and marginal cost decrease
According to the graph shown, if Q1 units are being produced, this monopolist should:
This graph shows the cost and revenue curves faced by a monopoly.
A. increase production.
B. charge P0 to maximize profits.
C. charge P1 to maximize profits.
D. charge P3 to maximize profits.
From 2015 to 2016, the overall price level rose from 200 to 220. Over the same period, tuition rates at the local community college rose from $100 to $115 per credit hour. What can be concluded from the rise in tuition relative to overall inflation?
a. Tuition rates increased at the same rate as inflation. b. Tuition rates increased at a slower rate than inflation. c. Tuition rates increased at a faster rate than inflation. d. Tuition rates and inflation cannot be compared with the numbers given.