Which of the following is a basic point that Keynes made about consumption?
A) Consumption and disposal income are inversely related.
B) When disposable income changes, consumption changes by a greater amount.
C) Consumption is dependent upon disposable income.
D) b and c
E) all of the above
C
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A perfect price discriminating monopoly produces the same quantity of output as a ________
A) single-price monopoly but charges a higher price B) perfectly competitive market C) perfectly competitive firm D) perfectly competitive market but charges a lower price
Grocery store chains advertise more than convenience stores because:
A) the advertising elasticity of demand is smaller for grocery store chains than for convenience stores. B) convenience stores have more elastic demand for their products than grocery store chains. C) the advertising elasticity of demand for convenience stores is near zero and is much smaller than for grocery store chains. D) all of the above E) none of the above
The Phillips curve fails to provide a consistent explanation for macroeconomic performance in the United States in the 1960s
a. True b. False Indicate whether the statement is true or false
Economic models simplify reality and help us to better understand important aspects of it
Indicate whether the statement is true or false