Retained earnings are
A. profits not given out to stockholders.
B. the funds used to pay corporate taxes.
C. the funds held back to pay out dividends.
D. the reason there is double taxation.
Answer: A
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The marginal propensity to consume (MPC) is defined as: a. the additional consumption that results from one dollar increase in disposable income. b. the fraction of total disposable income that households spend on consumption
c. the fraction of total disposable income that households save. d. the additional disposable income households earn in a given period.
In a perfectly competitive labor market, if any one firm decreases the amount of labor it employs, the most likely result will be that the
a. market wage rate will rise b. firm's revenue and cost will fall c. market wage will fall d. firm's revenue and cost will rise e. firm's revenue will fall, but its cost will remain unchanged
To be a natural monopoly, a firm must
a. control an essential natural resource input. b. be very large. c. have a continuously falling average cost curve as output rises. d. have falling average costs over a substantial range of total market demand.
Since 1960, high school graduation rates have
A. decreased across the board. B. increased across the board but proportionally more for African Americans. C. increased for African Americans and Hispanics but not for whites. D. increased for whites but not for Hispanics and African Americans.