Which of the following occurs when disposable income is zero?
A) consumption must be zero
B) saving must be zero
C) saving must be positive
D) consumption is negative
E) none of the above
E
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If consumers' incomes increase and the demand for bus rides decreases
A) bus rides are a normal good. B) consumers are behaving irrationally. C) bus rides are an inferior good. D) none of the above.
The above table has the total product schedule for Joe's Barber Shop. Joe charges $6 per haircut. If the wage rate is $24 per worker, what quantity of labor will maximize profits?
A) 1 worker B) 2 workers C) 4 workers D) 5 workers
The planned investment function will shift downward if
A) real disposable income increases. B) the interest rate falls. C) business expectations become more pessimistic. D) the existing stock of capital decreases.
Which of the following might be an effect of advertising?
a. all of the following b. increased product differentiation c. increased total costs of production d. increased average total costs of production e. increased demand for the product