A graphical plot of consumption expenditures against disposable income for the US over the past 20 years shows
a) no apparent relationship between consumption and disposable income
b) consumption remaining roughly constant as disposable income rises
c) consumption falling as disposable income rises
d) consumption rising as disposable income has fallen
e) consumption rising almost proportionately as income rises
e) consumption rising almost proportionately as income rises
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The 45-degree line splitting the distance between the axes in a Lorenz Curve is the:
a. line of equal share of expenditure. b. line of equivalent income. c. line of income equality. d. line of average income. e. line of absolute inequality.
The length of the short run
a. is different for different types of firms. b. can never exceed 3 years. c. can never exceed 1 year. d. is always less than 6 months.
If the price elasticity of demand is 1.0, and a firm raises its price by 10 percent, the total revenue will
A. Rise by 10 percent. B. Rise by 100 percent. C. Not change. D. Fall by 10 percent.
In the long run, an oligopolist is most likely to
A. Experience zero economic profits because barriers to entry do not exist in the long run. B. Face a straight demand curve. C. Produce at the most technically efficient output level due to long-run competition. D. Experience economic profits when sufficient barriers to entry are present.