Which of the following causes autonomous consumption to decrease?
A) a decrease in consumer income
B) consumers becoming more optimistic about future decreases in the price level
C) an increase in average family size
D) consumers becoming more thrifty
D
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In a market system, prices are determined by
a. corporate executives b. government bureaucrats c. supply and demand d. total market demand e. production costs
Country Y has fifteen thousand acres of land and forty-five thousand laborers, whereas the Rest of the World has one hundred thousand acres of land and two hundred thousand laborers. These countries produce a labor-intensive Good A, and a land-intensive Good B. When trade opens up between these countries, it can be inferred that Country Y will
A. import both goods. B. export both goods. C. export Good B, and import Good A. D. export Good A, and import Good B.
Refer to the above table. Assume the consumer spends his entire income. The price of a hotdog is $1, the price of a movie is $6, and the consumer has $15. What is the consumer's optimum?
A. 0 hotdogs and 2.5 movies B. 3 hotdogs and 2 movies C. 4 hotdogs and 4 movies D. 2 hotdogs and 2 movies
For the monopolist,
A. diminishing returns to production and a falling product price as output increases causes the short-run demand curve for labor to be downward sloping. B. an upward sloping marginal revenue curve causes its demand for labor to be downward sloping. C. increasing returns to scale cause the short-run demand curve for labor to be downward sloping. D. decreasing returns to scale cause the short-run demand curve for labor to be downward sloping.