If the consumption schedule is linear, then the:
A. saving schedule will also be linear.
B. MPS will decline as income rises.
C. MPC will decline as income rises.
D. APC will be constant at all levels of income.
A. saving schedule will also be linear.
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If people become pessimistic about the state of the economy, the consumption function shifts upward
a. True b. False Indicate whether the statement is true or false
The economic value which can be created by a transaction between two people, Ed (seller) and Luis (buyer), is $50 as Ed's opportunity cost of selling is $135 and Luis' valuation of the good is $185 . If each gains $25 from this transaction, which of the following conclusions can be drawn?
a. Transaction costs are zero. b. Luis has higher bargaining power than Ed. c. Ed has higher bargaining power than Luis. d. Transaction costs are positive.
When a monopolist is able to sell its product at different prices, it is engaging in
a. distribution pricing. b. quality-adjusted pricing. c. arbitrage. d. price discrimination.
A curve that shows the wealth distribution for the United States would be:
A. above the Lorenz curve for income. B. below the Lorenz curve for income. C. above the diagonal line. D. equal to the Lorenz curve for income.