In Figure 11.1, a decrease in the marginal propensity to consume is represented by a change in the consumption function from

The term underemployed refers to an individual who prefers full-time employment but works only part-time

a. True b. False Indicate whether the statement is true or false

When firms have an incentive to exit a competitive price-taker market, their exit will

a. lower market price. b. necessarily raise the costs of firms that remain in the market. c. raise profits for firms that remain in the market. d. reduce demand for the product.