In the consumption function, the real interest rate, consumer confidence, wealth, available consumer credit, and consumer debt are captured in the autonomous consumption term of the consumption function. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Assume a firm is producing 1000 units of a good by using two inputs, capital and labor, whose per unit prices are $50 and $20. Assume also that the marginal physical product of the last unit of capital is 25 and the marginal physical product of the last unit of labor is 15. In order […]
Date: September 10th, 2020
Assume the costs of production in the U.S. auto industry are rising and, at the same time, the prices of Japanese-made autos are decreasing. What would reasonably be expected to happen to the equilibrium price and quantity of U.S.-made autos? A) Price will increase; quantity cannot be determined. B) Price will decrease; quantity cannot be […]
Date: September 10th, 2020
The practice of setting price by increasing the average costs of production by some percentage is referred to as: A) average cost pricing. B) percentage pricing. C) rate-of-return pricing. D) markup pricing. ANSWER D
Date: September 10th, 2020
A record of all transactions between residents of the reporting country and residents of the rest of the world over a period of time is called the: A) national income product accounts. B) balance of payments accounting system. C) accrual accounting system. D) none of the above. ANSWER B
Date: September 10th, 2020
Assume that, for a particular demand curve, when price rises from $50 to $60, total revenue falls from $8,750 to $7800. a. Based on this information, what is the quantity demanded at each price. b. Without calculating the coefficient of elasticity, is demand over this range elastic or inelastic? How do you know? ANSWER […]
Date: September 10th, 2020
Consumer confidence is measured by two indices: the Consumer Sentiment Index and the Consumer Confidence Index. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
If the inputs to a production process are perfect complements, the firm can choose from a virtually infinite array of combinations of the two inputs to minimize the costs of producing a given level of output. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The current flows of goods, services, investment income, and unilateral transfers between a country and the rest of the world is called the: A) current account. B) financial account. C) national income product account. D) none of the above. ANSWER A
Date: September 10th, 2020
Assume the technology for producing personal computers improves and, at the same time, individuals discover new uses for personal computers so that there is greater utilization of personal computers. Which of the following will happen to equilibrium price and equilibrium quantity? A) Price will increase; quantity cannot be determined. B) Price will decrease; quantity cannot […]
Date: September 10th, 2020
