Personal consumption expenditures include
a. all goods that business firms buy
b. the purchase prices paid for stocks and bonds by individual households
c. the construction of residential housing
d. all goods and services bought by households
e. the corrected value of housewives' services
D
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Calculate the government purchases multiplier if the marginal propensity to consume equals 0.75, the tax rate is 0.2, and the marginal propensity to import equals 0.3
A) 1.43 B) 1.6 C) 3.33 D) 4
Profit maximization occurs where
A) each factor is used up to the point where its marginal revenue product is equal to its marginal factor cost. B) each factor is used up to the point where its marginal physical product is equal to its marginal factor cost. C) average variable cost equals marginal cost. D) average variable cost equals average total cost.
Suppose that a market for a product is in equilibrium at a price of $5 per unit. At any price above $5 per unit:
A. there will be an excess demand for the product. B. there will be an excess supply of the product. C. the quantity supplied of the product will be less than the quantity demanded of that product. D. there will be a shortage of that product.
This table shows the demand and supply schedule of a good.Price of GoodQDemandQsupply$0.005025$0.504026$1.003528$1.503131$2.002835$2.502740According to the table shown, at a price of $2.00 quantity demanded:
A. exceeds quantity supplied and a shortage exists. B. is less than quantity supplied and a surplus exists. C. exceeds quantity supplied and a surplus exists. D. is less than quantity supplied and a shortage exists.