When disposable income is extremely low,
A. autonomous consumption is greater than induced consumption.
B. induced consumption is greater than autonomous consumption.
C. autonomous consumption is equal to induced consumption.
D. autonomous consumption is rising.
A. autonomous consumption is greater than induced consumption.
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In the United States, health care spending per person based on income per person is ________ the average for most other countries
A) slightly lower than B) comparable to C) significantly lower than D) significantly higher than
Suppose Kate's Great Crete (KGC) has annual variable costs of VC = 30Q + 0.0025Q2 and marginal costs of MC = 30 + 0.005Q, where Q is the number of cubic yards of concrete it produces per year. In addition, it has an avoidable fixed cost of $50,000 per year. KGC's demand function is Qd = 20,000 - 400P. What is KGC's total revenue function?
A. TR = 50Q - 0.0025Q2 B. TR = 50Q + 0.0025Q2 C. TR = 20,000 - 400P D. TR = 50 - 0.005Q
If parking spaces on a college campus are scarce, with quantity demanded during the "peak" hours, from 8 a.m. to 11 a.m., far greater than the number of spaces, an economist would propose as an efficient solution,
a. lowering the parking fees during those hours to compensate students for the longer search time. b. charging the same parking fees during all hours of the school day. c. raising parking fees during the peak hours to encourage some students to schedule classes during other hours when parking fees are lower. d. hiring more security guards to patrol for illegal parkers.
If aggregate demand shifts right then in the short run
a. firms will increase production. In the long run increased price expectations shift the short-run aggregate supply curve to the right. b. firms will increase production. In the long run increased price expectations shift the short-run aggregate supply curve to the left. c. firms will decrease production. In the long run increased price expectations shift the short-run aggregate supply curve to the right. d. firms will decrease production. In the long run increased price expectations shift the short-run aggregate supply curve to the left.