The most important determinant of the level of consumption is
A. credit availability.
B. the level of disposable income.
C. the stock of liquid assets in the hands of consumers.
D. consumer expectations.
B. the level of disposable income.
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A firm's total cost in the short run is the sum of its fixed cost plus its variable cost plus its marginal cost
Indicate whether the statement is true or false
As long as there is asymmetric information among consumers and positive search cost, if price is below the monopoly price and the same across all firms, then a competitive firm
A) can always profit from raising its price. B) can always profit from lowering its price. C) can profit from raising its price but by no more than the search cost. D) can profit from lowering its price but by no more than the search cost.
Which of the following would likely be considered as a topic of microeconomics?
A) a nation's unemployment rate B) Gross Domestic Product C) the price of apples D) the effects of fiscal policy on the economy
In the long run, an increase in FDI in the manufacturing sector will:
a. increase marginal product of labor in the agriculture sector. b. increase marginal product of labor in the manufacturing sector. c. decrease marginal product of labor in the agriculture sector. d. not change the marginal product of labor in either sector