By the nature of consumer ________, it is reasonable to treat most of the expenditure on them as a form of saving rather than consumption, which it what it takes in permanent-income and life-cycle models to make the saving ratio ________ with rising
income. A) nondurables, rise
B) services, fall
C) services, rise
D) durables, rise
E) durables, fall
D
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Assume that both the demand curve and the supply curve for DVD players shift to the left but the demand curve shifts more than the supply curve. As a result
A) both the equilibrium price and quantity of DVD players will decrease. B) the equilibrium price of DVD players will decrease; the equilibrium quantity may increase or decrease. C) the equilibrium price of DVD players may increase or decrease; the equilibrium quantity will decrease. D) the equilibrium price of DVD players will increase; the equilibrium quantity may increase or decrease.
If prices of a nation's exported products rise in comparison to prices paid for imports, that nation experiences a:
a. rise in its international terms of trade. b. decline in its international terms of trade. c. reduction in its imports. d. reduction in its exports.
A Cournot duopoly firm's labor demand curve
A) is given by P[1 + 1/(2e)] MPL. B) is equal to P(1 + 1/e) MPL. C) is given by P(1 + 1/e) MR. D) is equal to P(e + 1/e) MPL.
If Tomas purchases a share of stock for $150 and one year later sells it for $225, he will realize a
A. a capital gain of $225. B. dividend of $225. C. capital gain of $75. D. dividend of $75.