Fill in the table below. Describe your result.
At the lowest levels of income, dis serving occurs as households spend more than they receive in disposable income. This dis serving could occur with households liquidating their assets or borrowing money. As income rises we see that savings increases by a greater and greater amount. This increase could occur because higher incomes make households more able to save or the importance of saving to households increases as income rises.
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Rob is considered unemployed in the Current Population Survey if he
A) does not have a job and stopped looking for a job at least two months ago. B) is in his last term of college before he graduates. C) has looked for a job in the last four weeks but has not found a job. D) has a part-time job but would like a full-time job. E) has worked at least 1 hour but not more than 15 hours as a paid employee during the last week.
In a figure that shows a supply curve and a demand curve, producer surplus is the area
A) below the demand curve and above the market price. B) below the supply curve and above the market price. C) above the demand curve and below the market price. D) above the supply curve and below the market price. E) between the demand curve and the supply curve.
The figure below shows the demand for meals at lunch and dinner for a proposed new restaurant. Suppose the marginal cost of a meal (both lunch and dinner) is constant at $10 per meal and marginal cost of providing the capacity is constant at $5 per meal. Once the managers have determined the profit-maximizing capacity, at dinner they will serve ________ meals and set a price of ________ per meal.
A) 200; $35 B) 800; $25 C) 200; $20 D) 600; $30
Answer the following questions true (T) or false (F)
1. Moral hazard refers to the actions people take after they have entered into a transaction that make the other party to the transaction worse off. 2. Vaccinations tend to result in a positive externality. 3. College education tends to result in a negative externality because the recipient does not receive the full benefit of the education.