The "life cycle" hypothesis sates that
a. MPC remains constant as national income rises
b. MPC varies with age
c. transitory income determines consumption
d. MPC varies with permanent income
e. consumption spending is independent of income
B
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A monopoly's marginal revenue is equal to the market price of its product
Indicate whether the statement is true or false
Assume that maximum feasible hourly productions levels if all resources are utilized in the United States are either 3 yards of fabric or 9 bushels of wheat
Maximum feasible production levels if all resources are utilized in Japan are either 6 yards of fabric or 12 bushels of wheat. Based on this information A) beneficial trade is absolutely impossible between the two countries. B) the United States will benefit from trading but Japan will not. C) both nations will gain from specialization and trade, with the United States exporting wheat and Japan exporting fabric. D) Japan should specialize in both products.