If the cost of producing sofas decreases, then consumer surplus in the sofa market will
a. increase.
b. decrease.
c. remain constant.
d. increase for some buyers and decrease for other buyers.
a
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GA 400 is a state highway that runs through part of Atlanta,GA. In order to travel on one portion of GA 400, drivers are required to pay a toll. It follows that section of GA 400 will exhibit non-rivalry in consumption if
a. the road is congested. b. the road is not congested. c. the toll is decreased. d. the the toll is completely removed.
Describe the relationship between the production function, the investment function, and the capital-labor ratio
What will be an ideal response?
"Automatic stabilizers" played a part in reducing the length and severity of the recession of 1953-54 . Which of the following is an example of an "automatic stabilizer"?
a. Deficit spending by the federal government b. Spending on education by local and state governments c. Programs like unemployment insurance and Social Security d. Actions by the Federal Reserve aimed at reducing interest rates
Answer the following statement(s) true (T) or false (F)
1. If the marginal propensity to save is 0.25 in an economy with no taxes and no imports, the marginal propensity to consume is 1.25. 2. Between 2003 and 2010, the unemployment rate in Ft. Myers, Florida, decreased from 13% to 3%. 3. Inventories are counted as investment because inventories are a source of future sales. 4. In a simple economy with no taxes, government spending, exports, or imports, if disposable income increases by $500 and $450 is consumed, $950 is saved.