Define the "consumption function."
What will be an ideal response?
The consumption function represents the relationship between consumer spending and income.
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A price searcher faces the following demand function: At $7, 6, 5, 4, and $3, the quantity demanded is 300, 400, 500, 600, and 700 units respectively. If the firm's marginal cost is $300 at any level of output, it would maximize net revenues by
A) producing 400 units and charging $6. B) producing 500 units and charging $5. C) producing 600 units and charging $4. D) producing 700 units and charging $3.
If the government increases the income tax rate they likely intend for:
A. C to decrease, shifting aggregate demand to the left. B. C to increase, shifting aggregate demand to the right. C. I to increase, shifting aggregate demand to the right. D. G to increase, shifting aggregate demand to the right.
Virtual currencies are threats to a nation's economy if they endanger the country's:
a. Price and financial stability. b. Payment system. c. End users. d. All of the above
When insurance companies set premiums based on average characteristics of certain groups, they are trying to ______.
a. bring reckless drivers into the market b. give poor drivers a second chance c. keep good drivers in the market d. push good drivers out of the market