Suppose Q = KaLb, if a + b < 1 the isoquants will be
a. upward sloping.
b. progressively closer together at higher quantities.
c. progressively further apart at higher quantities.
d. equally spaced.
c
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In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower prices. C. lower output. D. None of these is true.
In a recent article in USA Today, the price of gasoline rose over the past year from $3.50 to $4.00, a price hike of about 14.29 percent. Gasoline consumption over the past year declined by 10 percent. So, on the basis of this article, we can conclude
that A) The own-price elasticity for gasoline is nearly -0.70 B) The own-price elasticity for gasoline is -1. C) The own-price elasticity for gasoline is roughly -1.43. D) Can't tell; insufficient information.
Which of the following will NOT shift the aggregate demand curve?
A. a change in government expenditures B. depreciation in the value of the national currency C. a change in the domestic marginal tax rates D. a change in the domestic price level
The slope of the consumption schedule between two points on the schedule is:
A. The ratio of the change in consumption to the change in disposable income between those two points
B. The ratio of the change in disposable income over the change in consumption between
those two points
C. Equivalent to one plus the marginal propensity to save
D. Equivalent to the average propensity to consume