Which of the following correctly defines the average propensity to consume (APC)?
A) change in planned consumption divided by change in real disposable income
B) planned consumption divided by real disposable income
C) real disposable income divided by planned consumption
D) change in real disposable income divided by change in planned consumption
Answer: B) planned consumption divided by real disposable income
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A firm sells 1000 units per week. It charges $15 per unit, the average variable costs are $10, and the average costs are $25 . In the short run, the firm should
a. Shut-down as the firm is making a loss of $10,000 per week b. Shut-down as price is lower than average cost c. Continue operating as the firm is covering all the variable costs and some of the fixed costs d. Shut-down because it is cost effective to pay off the remaining fixed costs
The Clayton Act was passed in
a. 1887 b. 1890 c. 1914 d. 1936 e. 1952
Total cost schedule for a competitive firm: 
If market price is $30, how many units of output will the firm produce?
A. 0, the firm shuts down B. 1 C. 2 D. 3 E. 4
You currently sell the same product to both students and faculty members, and are able to prevent transfer from one group to the other. Your current prices, quantities sold, and the absolute values of the slopes of the demand curves are as follows: 
If your marginal cost is $1 and you are interested in maximizing your revenues, how would you adjust your prices?
A. Increase prices for both groups. B. Decrease prices for both groups. C. Increase student price and decrease faculty price. D. Decrease student price and increase faculty price.