A movement along the consumption function is caused by a change in:
a. the price level.
b. autonomous consumption.
c. real disposable income.
d. the stock of durable goods.
c
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The substitution effect of a decrease in the wage rate would lead most people to supply
A. less labor and demand less leisure. B. less labor and demand more leisure. C. more labor and demand less leisure. D. more labor and demand more leisure.
An investment option is profitable if:
A) its net present value is zero. B) its net present value is positive. C) its net present value is negative. D) its present value is negative
A country gains more from international trade the more its terms of trade differ from its autarky price
Indicate whether the statement is true or false
If marginal cost is constant, what happens to a market if it alters from perfect competition to monopoly without any change in the position of the market demand curve or any variation in costs?
A) Consumer surplus increases, and the previously existing deadweight loss decreases. B) Consumer surplus increases, and the previously existing deadweight loss increases. C) Consumer surplus is eliminated, and an equal-sized deadweight loss is created. D) Consumer surplus decreases in size, and a deadweight loss is created.