Suppose your consumption function shifts downward. This can be caused by if the consumption function shifts downward, which of the following is the most likely cause?
A. An increase to the price level
B. An increase to your disposable income
C. A decrease to the interest rate
D. A decrease in housing prices
Answer: A
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If average cost is falling, then marginal cost must be less than average cost.
Answer the following statement true (T) or false (F)
A firm produces 100 . units per week. It hires 10 full-time workers (40 hours/week) at an hourly wage of $20 . Raw materials are ordered weekly and they costs $5 for every unit produced. The weekly cost of the rent payment for the factory is $1,500 . How do the overall costs breakdown for the week?
a. total variable cost is $5,000 . total fixed cost is $1,500 . total cost is $6,500 b. total variable cost is $5,000 . total fixed cost is $9,500 . total cost is $14,500 c. total variable cost is $13,000 . total fixed cost is $1,500 . total cost is $14,500 d. total variable cost is $13,000 . total fixed cost is $9,500 . total cost is $22,500
The burden of a tax placed on buyers is:
A. shared between buyers and sellers. B. the buyers' incidence. C. the sellers' incidence. D. higher if the tax is placed on buyers.
In the aggregate expenditures model of the economy, a downward shift in aggregate expenditures can be caused by a:
A. Decrease in government spending or an increase in taxes B. Decrease in taxes or an increase in government spending C. Decrease in interest rates or a decrease in taxes D. Decrease in saving or an increase in government spending