In the graph for the consumption function, the 45-degree line
A. contains only a consumption component.
B. represents both planned consumption and planned investment.
C. reflects a decreasing APC as real disposable income rises.
D. shows various combinations where planned consumption equals real disposable income.
Answer: D
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International capital flows are:
A. exports plus imports. B. sales of domestic goods or services to foreigners. C. purchases of foreign goods or services. D. purchases or sales of real and financial assets across international borders.
Which statement is most accurate with respect to the federal government's land policies in the 19th century?
A. It gave away land, and rarely if ever charged even a token amount per acre. B. It gave away a lot of land and charged a token amount for the rest. C. It gave away no land, but charged only a token amount. D. It charged a fairly substantial amount for the land it sold.
The figure above shows the U.S. demand and U.S. supply curves for cherries. In the absence of international trade, cherry farmers would receive ________ per pound of cherries
A) $2.50 B) $1.50 C) $2.00 D) $1.00 E) $0.50
If price decreases by 10 percent and quantity demanded increases by 30 percent, the price elasticity of demand will be
A) 0.333. B) 3. C) 30. D) 300.