An upward shift in the consumption function, other things being equal, could be caused by households:
A. becoming optimistic about the state of the economy.
B. becoming pessimistic about the state of the economy.
C. expecting future income and wealth to decline.
D. experiencing a tax increase.
Answer: A
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A firm's fixed cost divided by its level of output is equal to its:
A. variable cost. B. start-up cost. C. explicit cost. D. average fixed cost.
If a vineyard wants to raise funds to purchase a new bottling machine, it does so in the
A) output market. B) product market. C) factor market. D) alcoholic beverages market.
Savings accounts are the most liquid of all assets because they can be quickly and easily transferred
a. True b. False Indicate whether the statement is true or false
Diminishing marginal returns means that aggregate production function is
a. linear b. downward sloping c. upward sloping d. concave e. convex