If the government-imposed price of corn is greater than the market price,
a. the quantity of corn supplied will exceed the quantity of corn demanded.
b. the quantity of corn supplied will be less than the quantity of corn demanded.
c. the demand curve for corn will shift to the right.
d. the supply curve of corn will shift to the right.
a. the quantity of corn supplied will exceed the quantity of corn demanded.
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Average total cost is equal to
A) average fixed cost + average variable cost. B) total cost รท quantity. C) the change in total cost when output changes by one unit. D) Answers A and B are correct. E) Answers A and C are correct.
If the marginal propensity to consume is unchanged and autonomous consumption expenditures increase, then
A. saving at every level of disposable income increases. B. the break-even disposable income increases. C. saving is unaffected. D. the break-even disposable income decreases.
A 10 percent increase in income has caused a 5 percent decrease in the quantity demanded. The income elasticity is
A) 0.5. B) -0.5. C) 2.0. D) -2.0.
The strict crowding-out argument relies on the assumption that
A. the government must raise taxes to pay for spending, and the tax increase crowds out the stimulative effect of increased spending. B. the total flow of saving is a fixed amount. C. investment is invariant to interest rates, but very dependent on aggregate spending. D. consumption will rise to absorb most of an increase in income, and investment will accordingly fall.