In the long run, firms in monopolistic competition produce at a level that is ________ the efficient scale of output
A) less than
B) equal to
C) more than
D) All of the above are possible depending on market conditions.
A
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Which of the following represents the relationship between disposable income (DI), consumption (C), and saving (S)?
A) DI = C * S B) DI + C = S C) DI = C - S D) DI = C + S
Autonomous consumption is 700 and the marginal propensity to consume is 0.6. Calculate the average propensity to save when disposable income is (a) 10,000, (b) 12,000, and (c) 15,000
What will be an ideal response?
Weak economies with shrinking incomes tend to buy more of everything, including imports
a. True b. False
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point B. The opportunity cost of moving from Point B to Point A is the
A. 120 LCD TVs that must be forgone to produce 20 additional OLED TVs. B. 30 LCD TVs that must be forgone to produce 40 additional OLED TVs. C. 20 OLED TVs that must be forgone to produce 30 additional LCD TVs. D. 40 OLED TVs that must be forgone to produce 120 additional LCD TVs.