In this graph, consumption is at the level of 2,500 when disposable income is
A. 0.
B. 1000.
C. 2000.
D. 3000.
B. 1000.
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Some politicians argue that reducing the corporate income tax will increase business investment spending
a. True b. False Indicate whether the statement is true or false
In the World View article on new tariffs on imported steel from China, the tariff is designed to
A. Protect U.S. steel consumers. B. Protect Chinese workers who produce steel. C. Protect U.S.-based import-competing industries. D. Protect U.S. steel distributors.
Which of the following is FALSE about public-sector decision making?
A. The price charged to consumers is often less than its full opportunity cost. B. Decisions are based on majority rule. C. Incentives play a role in decision making. D. Decisions involve no opportunity cost.
Answer the following statement(s) true (T) or false (F)
1. A risk-averse individual chooses to never place a bet. 2. Firms are more likely to exhibit risk-neutral behavior than are individuals. 3. Both ex ante and ex post preferences depend solely on the individual's tastes. 4. When a gamble is repeated many times, the average outcome is the expected value. 5. A risk-free basket has only one possible outcome.