The 45-degree reference line indicates all points at which
A) planned real saving and planned real investment are equal.
B) planned real saving and planned real saving are equal.
C) planned real consumption expenditures and real GDP are equal.
D) planned real consumption expenditures and planned real saving are equal.
C
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Which of the following is TRUE about monopolistic competition?
A) One firm serves as the entire industry. B) A small number of firms serve the entire market. C) It is competition among many firms producing similar but differentiated products. D) The pattern of production and trade is difficult to predict. E) It enjoys no economies of scale.
One way to explain the convexity of isoquants is to say that
A) as labor increases and capital decreases, MPL rises while MPK falls. B) as labor increases and capital decreases, MPL falls while MPK rises. C) as labor increases and capital decreases, MPL and MPK both fall. D) as labor increases and capital decreases, MPL and MPK both rise.