In Figure 11.1, a decrease in the marginal propensity to consume is represented by a change in the consumption function from
A) C1 to C3. B) C3 to C1. C) C2 to C1. D) C1 to C2.
C
You might also like to view...
The case where a firm sells each unit at the maximum amount each customer is willing to pay for it is called
A) first-degree price discrimination. B) second-degree price discrimination. C) third degree price discrimination. D) nonlinear price discrimination.
What most frightens investors in the stock market is:
a. the possibility of losing their investments b. the possibility of gaining too much from their investments, and the resultant tax consequences c. the possibility that the prices of many investments may collapse simultaneously d. the possibility that a company that they have invested in will go bankrupt
A price support system:
a. establishes a price floor for a farm product b. results in a surplus c. is costly to taxpayers and consumers d. all of the above
In economics, what term is used to describe a concentration of efforts toward producing one type of goods?
a. repetition b. specialization c. competition d. consumption