An Upward Shift in the Consumption Function

question 45

Multiple Choice

An upward shift in the consumption function

• A) results if people decide they want to save more.
• B) has the same kind of multiplier effect as an increase in investment.
• C) occurs if people's incomes rise.
• D) raises the average propensity to save.
• E) raises the marginal propensity to consume.

Recognize the role of collusive behaviors like bid-rigging and how they impact auction outcomes.

Understand the concept and outcomes of sealed-bid versus open auctions.

Calculate expected values and infer bidder valuations from auction outcomes.

Distinguish between the strategic approaches to bidding in first-price and second-price auctions.

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Definitions:

External Consideration

The evaluation of external factors or circumstances that might affect decisions, actions, or outcomes.

Positioning Activities

Marketing efforts aimed at shaping the perception of a product or brand in the target market's mind, relative to the competition.

Target Market

A specific group of potential consumers at whom a company aims its products and services.

Executive Summary

A concise overview at the beginning of a report, business plan, or document that summarizes the main points for readers, offering a quick insight into the document's purpose and content.