The consumption function becomes flatter if:
a. the average propensity to spend increases.
b. the marginal propensity to spend increases.
c. the marginal propensity to save increases.
d. the autonomous consumption increases.
e. the autonomous consumption decreases.
c
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In a game with multiple Nash equilibria, all of the following can be used to determine the equilibrium of the game except which one?
A) the Focal point B) a coin flip C) the Pareto criterion D) refinements
Which of the following is true about the differences between M-form and U-form firms? a. As M-form firms are more diversified, it is more difficult for the management to acquire and compare information about products and locations than a U-form firm. b. A U-form firm can better incentivize managers than M-form firms. c. In an M-form firm the interests of executives in product or geographic
divisions can bebetter aligned with those of shareholders compared to a U-form firm. d. M-form firms usually operate in fewer markets than U-form firms.
Which of the following could be an institutional barrier to employment?
a. all of the above b. minimum wages c. labor unions d. licensing requirements
Refer to Figure 4-7. The movement from Db to Da in the market for potato chips could be caused by a(n)
a. Decrease in the price of potato chips.
b. Decrease in income, assuming that potato chips are a normal good.
c. Announcement by the FDA that potato chips lower cholesterol.
d. Increase in the price of a pretzel.