Define consumption function
Consumption function: The relationship among income and consumption is termed as consumption function.
Multiplier: It is the number by which change in investment should be multiple in order to find out the resultant change in income and output.
In an economy the MPC is 0.75. Investment expenses in the economy raise by Rs.75 crore. Compute total increase in national income.
The market value of an asset or potential investment project is most specific to rise when typical investors expect: (w) after-tax rates of return by investing to exceed the interest rate applicable for assets or investments along wit
If an oligopoly achieves equilibrium, in that case the marginal social: (w) benefits of their products exceed the marginal social costs. (x) cost of their product exceeds the marginal social benefit. (y) benefits equal the marginal so
This monopolistic competitor generates Q0 output and experiences: (1) only normal accounting profits, and zero economic profits. (2) positive economic profits. (3) high costs because of excessive managerial salaries. (4) stagnation because
When wage discrimination is not likely for the first 40 workers this profit-maximizing firm hires, however it can wage discriminate absolutely whenever hiring all the subsequent workers, it hires a net of: (1) 40 workers at average wage of $700 per week per worker. (2
A firm within a purely competitive industry: (w) will produce only as long as its marginal revenue is greater than its marginal cost. (x) decides what level of output to produce based upon an analysis of total revenues and total costs. (y) produces th
An income elasticity of demand for a good equivalent to two implies roughly that: (1) demand curves for the good slope upward. (2) the product is an inferior good. (3) each 1% gain in income boosts the amount sold through 2%. (4) a 20% gain in income
Significant influences on union non-union wage differentials comprise the: (1) Proportion of an industry which is unionized and the frequency of strikes. (2) Frequency of strikes, inflation and the collective bargaining policies. (3) Collective bargai
What will be the consequence of a rise or fall in the bank rate on money supply? Answer: It will reduce or raise the money supply.
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