When a consumption schedule is plotted as a straight line, the slope of the consumption line is
A. horizontal.
B. vertical.
C. greater than the slope of the 45º line.
D. less than the slope of the 45º line.
Answer: D
You might also like to view...
In terms of life expectancy and infant mortality, other OECD nations are able to generate superior health care outcomes with fewer resources relative to the United States
Indicate whether the statement is true or false
Which of the following would be most likely to increase your opportunity cost of attending college?
a. a recession in the economy that made finding a job more difficult b. receiving a very attractive offer to start a job today that would permit you to earn about 50 percent more than you expected to make after graduation c. the retirement of your favorite professor under whom you hoped to study during the next semester d. information indicating that salaries were declining and that there were very few openings for college graduates in your field
Suppose that Figure 10.5 shows a monopolist's demand curve, marginal revenue, and its cost. The monopolist would maximize its profit by producing a quantity of ________ and by charging a price of ________.
A. 35; $65 B. 50; $50 C. 70; $30 D. There is not sufficient information.
Which of the following statements best summarizes the law of diminishing marginal returns?
A) In the short run, as more labor is hired, output diminishes. B) In the short run, as more labor is hired, output increases at a diminishing rate. C) In the short run, the amount of labor a firm will hire diminishes as output increases. D) As more labor is hired, the length of time that defines the short run diminishes.