The portion that households spend of each additional dollar they receive is called the
A. marginal after-tax income.
B. after-tax incentive.
C. natural tendency to consume.
D. marginal propensity to consume.
Answer: D
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If the shoplifter knows that the security guard has a reputation of always being vigilant, what is his best response?
a. Steal b. Not steal c. Run d. Hide
One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money. B. by increasing government spending. C. by setting price ceilings on most goods so people can afford them. D. None of these will help an economy in recession.
Consider a Stackelberg duopoly with the following inverse demand function: P = 100 ? 2Q1 ? 2Q2. The firms' marginal costs are identical and are given by MCi(Qi) = ciQi. Based on this information, the Stackelberg leader's marginal revenue function is:
A. MR(QF) = 100 ? QF - 0.5cF. B. MR(QL) = 50 ? 2QL - 0.5cF. C. MR(QL) = 50 ? 2QL - 0.5cL. D. MR(QF) = 100 ? 2QF - 0.5cF.
Which of the following types of firm most closely fits the description of a competitive firm?
a. new car manufacturers: General Motors, Ford, Chrysler, Toyota, etc. b. local grocery stores c. corn farmers d. the local electric utility