According to the life-cycle hypothesis, if the average person expects to live another 48 years, the short-run MPC out of unexpected changes in income is
A) 0.52.
B) 0.48.
C) 0.9792.
D) 0.0208.
D
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Which of the following will not lead to increase in the marginal revenue product?
A. MPP increases without any changes in the price. B. Price of the product increases without any changes in MPP. C. MPP and price of the product increase. D. MPP remains the same and price of the product falls.
If the quantity of hearing aids demanded is represented by the equation QD = 40 - P then the corresponding price of hearing aids is represented by the equation
A) P = 0.25 - 4QD. B) P = QD + 40. C) P = 0.5QD + 20. D) P = 40 - QD.
Many experts on the nursing shortage insist that, in addition to higher money wages, other ways will have to be found to make the nursing profession more attractive, including, for example, more respect from physicians and administrators, more flexible schedules, and more secure parking lots. These facts illustrate the concept of
A. exploitation. B. pecuniary principles. C. economic rent. D. nonmonetary attractiveness.
Accounting costs are often unsatisfactory from the economist's point of view because
a. they fail to allow for depreciation, the wearing out of capital assets during a period. b. they often exclude the opportunity costs of the firm's equity capital. c. accountants attempt to minimize costs in order to make profits look good. d. accounting procedures are designed to overstate costs in order to minimize business tax liability.