The slope of the consumption schedule between two points on the schedule is
A. the ratio of the change in consumption to the change in disposable income between those two points.
B. equivalent to the average propensity to consume.
C. equivalent to one plus the marginal propensity to save.
D. the ratio of the change in disposable income over the change in consumption between those two points.
Answer: A
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When two people trade,
A. they both expect to be made better off by the exchange. B. both of them expect to be made worse off by the exchange. C. they are trying to help out each other. D. they know one of them will get the better of the other.
The gross domestic product (GDP) of a country measures the _____
a. market value of all intermediate goods and services produced by resources located within the country b. market value of all goods and services produced by resources located outside the country c. market value of all final goods and services produced by resources located within the country d. value added to the economy by intermediate goods and services minus original cost e. value of the total sales of financial assets
According to the political business cycle, after an election, unless the central bank acts inflation is likely to
a. have risen. To counter this the central bank would raise interest rates. b. have risen. To counter this the central bank would lower interest rates. c. have fallen. To counter this the central bank would raise interest rates. d. have fallen. To counter this the central bank would lower interest rates.
It is less likely for oligopolists to maintain high prices in a repeated game than when the firms must choose one strategy to follow for the entire lifetime of the firm.
Answer the following statement true (T) or false (F)