If businesses become very pessimistic and reduce spending, which of the following is the most likely in the short run?
a. An increase in output, an increase in money demand and an increase in the interest rate.
b. A decrease in output, an increase in money demand and an increase in the interest rate.
c. A decrease in output, a decrease in money demand and a decrease in the interest rate.
d. An increase in output, a decrease in money demand and a decrease in the interest rate.
e. A decrease in output, a decrease in money demand and an increase in the interest rate.
C
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A profit-maximizing firm will continue to expand output:
a. as long as the revenues from the production and sale of an additional unit exceeds the average cost of the unit. b. until the average cost of producing the good or service is at a minimum. c. as long as the revenues from the production and sale of an additional unit exceeds the marginal cost of the unit. d. until the marginal cost of producing a good or service is at a minimum.
Lydia enjoys going to the theater to see Broadway musicals. The following demand schedule shows Lydia's willingness to pay for theater tickets in a year. Ticket Price Number of Tickets $90 1 $80 2 $70 3 $60 4 $50 5 $40 6 If the price of tickets to Broadway musicals equals $50, Lydia's consumer surplus will be:
a. $350. b. $300. c. $250. d. $100.
Suppose that disposable income is $1,000 consumption is $700 and the MPC is 0.6. If the disposable income increases by $100, consumption and savings will equal which of the following?
A) $420/$280 B) $600/$400 C) $660/$320 D) $660/$440 E) $760/$340
Which of the following is an explanation for the high labor-productivity in the United States?
A. Plentiful capital resources B. High total output in industries C. High price of labor D. Plentiful labor resources