The numerical value of the MPC is typically
a. less than 1.
b. equal to 1.
c. greater than 1.
d. unpredictable.
a
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Over the past 100 years real GDP per person in the United States, on average, has
A) decreased by about 5 percent per year. B) increased by about 2 percent per year. C) increased by about 5 percent per year. D) increased by about 10 percent per year.
In a market system, what must take place for quantity demanded to continually be equated with quantity supplied?
A. Businesses must engage in involuntary, unprofitable exchanges to eliminate surpluses or shortages. B. Tastes and preferences of consumers must adjust to eliminate surpluses or shortages. C. Relative prices must be able to adjust to market clearing levels. D. Price controls must be applied by governments.
If labor productivity increases
A. the demand for labor increases. B. jobs will relocate. C. some workers will be laid off. D. labor costs rise by equal increments.
If a perfectly competitive firm shuts down in the short run and exits the industry in the long run, the firm's short run condition is
A. TR > TC. B. TR > TVC and TR < TC. C. TR < TVC. D. TR < TFC.