The figure above shows a nation's consumption function. If disposable income is $4 trillion, then the MPC is ________ and saving is ________
A) negative; positive
B) positive; positive
C) positive; zero
D) negative; negative
E) positive; negative
B
Economics
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A monopolistically competitive firm is like an oligopolistic firm insofar as
A) both face perfectly elastic demand. B) both can earn an economic profit in the long run. C) both have MR curves that lie beneath their demand curves. D) neither is protected by high barriers to entry.
Economics
The current market price for good X is below the equilibrium price, and then the demand curve for X shifts rightward. What is the likely outcome of the demand shift?
A) The surplus increases. B) The surplus decreases. C) The shortage increases. D) The shortage decreases.
Economics