One In the News article titled "Consumer Confidence Index at Record Low" indicates that consumer confidence decreased. As a result, which of the following is most likely to happen?
A. Total spending will increase.
B. Investment will increase.
C. Autonomous consumption will decrease.
D. Government spending will decrease.
Answer: C
You might also like to view...
If person A sells a 2003 Treasury bond futures contract to person B, in market terminology,
A) A is long and B is short. B) A is short and B is long. C) A is short and B is the broker. D) A is long and B is the dealer.
Use the information in the table below.Total salesIndustry 1Firm 1$5.3mFirm 2$199,000Firm 3$2.6mFirm 4$850,000What is the Herfindahl index for Industry 1?
A. 3481 B. 9801 C. 4407 D. 30,798
Which of the following statements best describes price flexibility in the economy?
A. Prices tend to be sticky in the short run and stuck in the long run. B. Prices tend to be just as sticky in the short run as in the long run. C. Prices tend to be sticky in the short run but become more flexible over time. D. Prices tend to be flexible in the short run but become more sticky over time.
A market has four individuals, each considering buying a grill for his backyard. Assume that grills come in only one size and model. Abe considers himself a grill-master, and finds a grill a necessity, so he is willing to pay $400 for a grill. Butch is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Collin just met the girl of his dreams, and she loves a good grilled steak, so in his effort to impress her he is willing to pay $320 for a grill. Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp, so he is willing to pay $200 for a grill. Given the scenario described, if the market price of grills is $300, who participates in the market?
A. Only Abe, Butch, and Collin participate. B. Only Abe and Butch participate. C. Only Collin and Daniel participate. D. Only Daniel participates.