If the consumption function is C = 90 + 0.75y, then the level of autonomous consumption is
A) 0.25. B) 0.75. C) 67.5. D) 90.
D
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An example of an explicit cost of production is: a. the cost of foregone labor earnings for an entrepreneur
b. the cost of flour for a baker. c. the foregone rent that could have been earned if land owned by a firm was not used as its parking lot. d. provided by none of the above.
The production possibilities curve can shift inward when
A. a country experiences a natural disaster. B. employment increases. C. the stock of productive capital rises. D. production increases.
In perfect competition, restrictions on entry into an industry
a. do not exist. b. apply to labor but not to capital. c. apply to capital but not to labor.
Suppose over some period of time the money supply tripled, velocity doubled, and real GDP doubled. According to the quantity equation the price level is now
a. 6 times its old value. b. 3 times its old value. c. 1.5 times its old value. d. 0.75 times its old value.