When individuals spend all of an income increase, the marginal propensity to save is zero.
Indicate whether the statement is true or false.
Answer: True.
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The demand for labor curve depicts
a. a relationship between the price of a good and the quantity of labor necessary to produce different amounts of that good b. a relationship between wages and profits in a firm c. how the wage rate changes when the price of the good produced by labor changes d. a relationship between the real wage rate and the quantity of labor demanded e. how much labor will be hired at different profit levels
If a gamble has an expected value of $10, then one can predict that:
A. all risk-neutral people will take the gamble. B. only risk-averse people will take the gamble. C. the gamble never pays out more than $10. D. no risk-averse person will take the gamble.
Which of the following is an accurate statement about external economies of scale?
a. They involve a rise of market prices. b. They involve a reduction of input costs. c. They involve a shift of the MC curve upward. d. They involve a shift of the ATC curves to the right.
Refer to the information provided in Figure 9.2 below to answer the question(s) that follow.
Figure 9.2Refer to Figure 9.2. Suppose demand for wheat is initially D2. If consumer incomes increase, then demand for wheat will shift to ________. This will ________ the equilibrium price of wheat, and individual profit-maximizing firms will produce ________ bushels of wheat.
A. D3; increase; 15 B. D1; decrease; 0 C. D1; increase; 10 D. D3; decrease; 7