Disposable income is what households have to spend or to save.
Answer the following statement true (T) or false (F)
True
Consumption plus saving is equal to disposable income-what is left after all taxes have been paid.
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Which of the following would lead GDP to overstate economic welfare?
A) the existence of home-cooked meals B) restaurant workers that under-report tip income C) a self-employed CPA who takes a longer than normal vacation D) electric utilities that switch to burning coal because of higher natural gas prices and thereby create more acid rain pollution
Which statement is true of an exogenous variable in an economic model?
A) It has no direct relation to the endogenous variables. B) Its value within the model cannot be changed. C) It is often a policy variable. D) It is explained inside the model. E) All of the above.
The circular flow of economic activity is a model of the: a. flow of goods, services, and payments between households and firms. b. influence of government on business behavior
c. role of unions and government in the economy. d. interaction among taxes, prices, and profits.
The CPI is a measure of the overall cost of the goods and services bought by a typical consumer
a. True b. False Indicate whether the statement is true or false