An expenditure schedule model with no government sector shows the relationship between
A. C and national product.
B. C and disposable income.
C. C + I and national income.
D. GDP and disposable income.
Answer: C
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Two countries, Rhodia and Rubium, have identical production functions of the form:
Y = A × K0.25 × H0.75 Both countries have the same amount of capital stock and use the same technology. However, the total efficiency units of labor available in Rhodia is higher than that in Rubium. Which of the following is likely to be true in this case? A) The poverty rate in Rhodia is likely to be higher than that in Rubium. B) The gross domestic product of Rhodia is higher than that in Rubium. C) The gross domestic product of Rubium is higher than that in Rhodia. D) The Human Development Index of Rhodia is lower than that of Rubium.
Which of the following would make it easier to maintain an effective collusive agreement in a cartel?
A) An increase in the number of potential entrants into the industry. B) A decrease in the elasticity of demand for the cartel's product. C) An increase in the number of substitutes for the product produced by the cartel. D) A new method of pricing that makes it more difficult for each firm to monitor the prices that the other firms in the cartel are charging.
The supply schedule assumes that factors other than:
A. price remain the same. B. price must change. C. supply remain the same. D. supply must change.
Refer to Figure 7.6. Which graph represents decreasing returns to scale?
A. A
B. B
C. C
D. Both graph A and graph C