If consumption increases while income remains the same, the average propensity to consume will:
A. Increase and then decrease
B. Remain constant
C. Increase
D. Decrease
C. Increase
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Annual expenditures by the federal government exhibited an upward trend, rising from $3 billion in 1930 to more than $1 trillion in 2010
a. True b. False Indicate whether the statement is true or false
An economist would say the price is too high for a certain service if
A. poor people couldn’t afford to buy it. B. nobody could afford to buy it. C. the price was above marginal cost. D. it is an essential service and consumes a significant share of income.
An economic system includes
a. money, stocks and bonds b. a mechanism for allocating resources and a mode of resource ownership c. a mechanism for dividing up resources and a way to ensure that technology advances d. a mechanism for allocating stocks, bonds and money and a mode of technology e. government ownership, labor time, and machines
Game theory applies to problems that arise in
a. perfect competition. b. monopolies. c. oligopolies. d. pure competition.