The 45-degree line used in a consumption function represents:
a. the saving function.
b. all points at which saving equals disposable income.
c. all points at which consumption equals saving.
d. all points at which all disposable income is consumed.
e. the aggregate income of the economy.
d
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Total surplus or gains created from trade equal
a. Seller surplus b. Buyer surplus c. The summation of seller and buyer surplus d. Profits earned by a firm
According to the graph shown, if Q2 units are being produced, this monopolist:
This graph shows the cost and revenue curves faced by a monopoly.
A. is earning negative profits.
B. should cut back production to increase profits.
C. is maximizing revenue.
D. is maximizing profits.
The way one unit of a firm relates to another in the same firm is referred to as being
A) upstream or downstream. B) latitudinal or longitudinal. C) left or right. D) competitor or conspirator.
You put money into an account. One year later you see that you have 6 percent more dollars and that your money will buy 2 percent more goods
a. The nominal interest rate was 8 percent and the inflation rate was 6 percent. b. The nominal interest rate was 6 percent and the inflation rate was 4 percent. c. The nominal interest rate was 4 percent and the inflation rate was 2 percent. d. None of the above is correct.