A reduction in the marginal propensity to save from .4 to .3 will cause
A) the ZZ line to become steeper and a given change in autonomous consumption (c0 ) to have a smaller effect on output.
B) the ZZ line to become steeper and a given change in autonomous consumption (c0 ) to have a larger effect on output.
C) the ZZ line to become flatter and a given change in autonomous consumption (c0 ) to have a smaller effect on output.
D) the ZZ line to become flatter and a given change in autonomous consumption (c0 ) to have a larger effect on output.
C
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In the figure above, Nike's economic profit is ________
A) $3,000 B) $1,800 C) $9,000 D) zero
Refer to Table 2-2. Assume Billie's Bedroom Shop only produces pillows and blankets. Billie faces ________ opportunity costs in the production of pillows and blankets
A) negative B) constant C) decreasing D) increasing