If the consumption function is defined as C = 7,250 + 0.8Y, what is the autonomous level of consumption expenditure?
A) $5,800
B) $7,250
C) $9,062.50
D) $9,700
B
You might also like to view...
In the figure above, 10 percent of income in country A is distributed to the
A) richest 10 percent of the households. B) poorest 10 percent of the households. C) richest 30 percent of the households. D) poorest 30 percent of the households.
A corollary to the Rybczynski theorem is that in the long run, prices of factors will not be affected. This is known as:
a. the Friedman corollary. b. the MarshallLerner condition. c. the factor price insensitivity result. d. the StolperSamuelson prediction.
The price of tea increases. Which of the following is NOT part of the likely chain of events that follows from this price change?
A. Tea leaf producers increase production. B. Tea leaf producers lay off some more workers. C. Tea leaf producers increase their production of tea. D. Some tea consumers reduce their consumption of tea.
Refer to the information provided in Figure 7.11 below to answer the question(s) that follow. 
Figure 7.11
Refer to Figure 7.11. If the firm's cost of capital is $18 per unit, then its cost of labor is ________ per unit.
A. $1.80 B. $9 C. $36 D. $900