If you produce a graph with consumption spending on the vertical axis and disposable income on the horizontal axis, the relation between consumption and income will
a. be inverse.
b. be transcendental.
c. shift unpredictably.
d. be direct.
d
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The following government policies will help achieve faster economic growth EXCEPT
A) establishing and protecting property rights. B) improving the quality of education. C) discouraging saving and encouraging spending. D) encouraging research and development. E) increasing saving.
Which of the following is true for taxes? They
A) are always administered fairly. B) are a necessary part of living in an economy with a fair distribution of income. C) are always administered without creating unfairness or inefficiency. D) are an involuntary transfer of private property. E) do not create a big tradeoff problem.
Which of the following is most likely to have declining opportunity costs?
A) a delivery van B) an apartment building in Manhattan C) an acre of land in San Francisco D) a park in downtown London
The law of increasing opportunity cost is based on the idea that
a. wages tend to increase with the level of employment b. interest rates tend to rise with increasing inflation c. labor costs for a typical firm are a large and growing proportion of total cost d. most resources are better suited to producing some goods than others e. the less of something we produce, the greater is the opportunity cost of producing still more