Suppose total disposable income in Country X rises by $500 billion while total consumption rises by $50 billion. What would be the slope of the consumption function for this nation?
a. 1
b. 0.1
c. 0.5
d. 0.25
e. 0.4
b
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Which of the following statements is true?
A) In any game, the best response of a player is also her dominant strategy. B) The best response of a player is not always her dominant strategy. C) A prisoners' dilemma game is an example of a zero-sum game. D) A prisoners' dilemma game is an example of an extensive-form game.
If asset returns are less than perfectly correlated, portfolio diversification
A) reduces systematic risk. B) reduces nonsystematic risk. C) increases systematic yields. D) reduces systematic yields.
A firm enjoys a positive economic profit when:
a. the demand curve touches the average cost curve at the profit-maximizing level of output. b. the marginal revenue curve has a negative intercept on the ordinate axis. c. the average revenue curve lies below the average cost curve at the profit-maximizing level of output. d. the marginal cost is declining at the profit-maximizing level of output. e. the average revenue curve lies above the average cost curve at the profit-maximizing level of output.
If there is an increase in the demand for a good, what will happen to the equilibrium price and quantity of the good exchanged?
a. Decrease Decrease b. Increase Decrease c. Decrease Increase d. Increase Increase