If the consumption schedule is a straight line, it can be concluded that the:
A. APC is necessarily constant
B. MPC is zero
C. MPC is constant at various levels of income
D. APC is equal to the MPC
C. MPC is constant at various levels of income
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Business inventories increase when firms produce ________.
A. less than they sell, and the inventory increase is subtracted from GDP B. more than they sell, and the inventory increase is subtracted from GDP C. more than they sell, and the inventory increase is added to GDP D. less than they sell, and the inventory increase is added to GDP
Suppose that the production function for the economy is Y = AK0.5L0.5. If the capital stock = 40,000, the quantity of labor = 10,000, and the efficiency index = 3, the equilibrium real rental price of capital is
A) $0.33. B) $0.75. C) $1.00. D) $2.22.
Affirmative action programs are intended to combat
A. poverty. B. economic inequality. C. discriminatory practices by employers. D. “comparable worth” systems of compensation.
Suppose a country with a large domestic textile industry removed all tariffs on imported textiles, we would expect domestic:
A. textile prices to decline. B. textile production to increase. C. textile employment to increase. D. textile prices to rise.