If consumption is greater than disposable income, it follows that
A) interest rates are rising.
B) the budget deficit is shrinking.
C) saving is negative.
D) the multiplier is inoperative.
E) none of the above
C
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An example of a question that might be explored in microeconomics is to determine
A) the number of workers employed by Intel. B) savings by the household sector. C) why the U.S. economy has grown more rapidly than the Japanese economy. D) the total employment within the U.S. economy.
An industry in which total costs are kept to a minimum because only one firm serves the whole market is called a:
a. natural monopoly. b. competitive monopoly. c. patent monopoly. d. limit monopoly.
What is the Portugal's opportunity cost of producing 3 bottles of wine?
Answer the following statement(s) true (T) or false (F)
1. If a government collects more taxes than it spends, there is a budget deficit. 2. Firms and households create the demand for loanable funds. 3. Both the supply and the demand curves of loanable funds are negatively sloped. 4. A low saving rate makes more money available for investment. 5. Early in the twenty-first century, it was common for people to get mortgages with no down payment and minimal documentation.