The consumption function shows the relationship between real consumption spending and
a. real wealth
b. the interest rate
c. expectations
d. real disposable income
e. debt
D
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The voting paradox suggests that the "voting market," as represented by elections
A) leads to a superior outcome in representing consumer preferences compared to the private market for goods and services. B) is no different from the private market for goods and services in terms of representing consumer preferences. C) may not lead to an efficient outcome but certainly leads to a more equitable outcome in terms of distributing goods and services. D) may often lead to an inefficient outcome in representing consumer preferences compared to the private market for goods and services.
Low-cost Eurocurrency loans can be obtained in offshore financial centers.
a. true b. false
If the demand for farm products is price inelastic, a good harvest will cause farm revenues to:
A. increase. B. decrease. C. be unchanged. D. either increase or decrease, depending on what happens to supply.
A consumer has spent all of his funds on hamburgers and movies. The price of a hamburger is $1 and the price of a movie is $5. The marginal utility of the last hamburger is 5 and the marginal utility of the last movie is 40. This consumer has
A. not maximized utility. To maximize utility, he should cut back on movies and buy more hamburgers. B. not maximized utility. To maximize utility, he should cut back on hamburgers and buy more movies. C. maximized utility. D. not maximized utility. To maximize utility, he should cut back consumption of each.