Which of the following statements is most accurate?
a. Most of the variation in consumption spending can be explained by changes in the interest rate.
b. Most of the variation in consumption spending can be explained by changes in disposable income.
c. Most of the variation in consumption spending can be explained by changes in wealth.
d. Most of the variation in consumption spending can be explained by changes in debt.
e. There is no single factor that explains much of the variation in consumption spending.
B
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GDP divided by the population gives us
A) the price level. B) the GDP deflator. C) per capita GDP. D) real GDP. E) none of the above.
"Scarcity implies that some way of rationing goods must be found." Explain what this statement means. How is this rationing done?
What will be an ideal response?
A difference between economic regulation and social regulation is that
A) the former tends to affect the prices at which products are sold and the latter does not. B) the former tends to affect the profits of firms and the latter does not. C) the former tends to be specific to an industry and the latter tends to affect firms in all industries. D) the former tends to be done at the state level and the latter at the federal level.
Walmart has been pursuing improvements in its reputation in response to growing criticism on environmental, labor, and social issues in its foreign supplier factories. Among others, which requirement has Walmart imposed on its Chinese suppliers?
a. They must demonstrate compliance with Chinese environmental laws. b. There must be a 100% improvement in energy efficiency at China's 200 largest suppliers. c. They must increase their wages to the equivalent of the U.S. minimum wage. d. It has imposed all of these on its Chinese suppliers.