The rutabaga market is perfectly competitive and the price of a ton of rutabagas rises. As a result, Rudy, a rutabaga farmer, will
A) decrease his output of rutabagas.
B) not change his output of rutabagas because Rudy's firm is a price taker.
C) increase his output of rutabagas.
D) at first decrease and then increase his output of rutabagas.
E) probably change his output of rutabagas, but more information is needed about the change in the marginal revenue of a ton of rutabagas.
C
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The simple accelerator theory suggests that investment will be rising when
A) output is rising. B) the growth of output is rising. C) output is high. D) the growth of output is high.
When the consumption schedule is plotted on a graph,
A. consumption is on the horizontal axis and disposable income is on the vertical axis. B. consumption is on the horizontal axis and saving is on the vertical axis. C. consumption is on the vertical axis and saving is on the horizontal axis. D. consumption is on the vertical axis and disposable income is on the horizontal axis.