In a graph with disposable income on the horizontal axis and consumption on the vertical axis, the intersection of the 45-degree line with the
A. Full-employment output indicates equilibrium (macro).
B. Aggregate spending curve indicates full employment.
C. Aggregate demand curve indicates equilibrium.
D. Consumption function indicates zero saving.
Answer: D
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According to the above table, if these two countries trade
A) Mexico should import computers and the United States import bicycles. B) the United States should import computers and Mexico should import bicycles. C) the United States should export bicycles and Mexico should export computers. D) we cannot tell which country should export which good without knowing the amount of labor utilized in each country.
Bank interest rates on short-term business loans during the late 1970s
A. had an upward trend. B. had a downward trend. C. stayed about the same.
If marginal cost exceeds marginal revenue, a profit-maximizing monopolist will:
A. restrict output to increase the price even higher. B. raise price and expand output to increase profit. C. lower price and expand output to increase profit. D. attempt to maintain this position because it is consistent with profit maximization.
A "twinkie tax" on fatty foods would aim to
A) reduce the consumption of fatty foods. B) reduce the production of fatty foods. C) raise tax revenues for other uses. D) All of the above.