The amount of compensation associated with the income effect of a price change is called:
A. a compensation variation.
B. an income effect.
C. consumer surplus.
D. a subsidy.
A. a compensation variation.
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An aggregate demand curve
A) shifts to the right when the price level increases and to the left when the price level falls. B) shifts to the right when population decreases and shifts to the left when population increases. C) does not shift, unlike individual or market demand curves. D) shifts to the right when any non-price-level factor increases total planned real spending.
Suppose that in 2016, the national income in the United States was $200 billion, depreciation was $15 billion, personal taxes were $20 billion, and transfer payments were $10 billion. Gross domestic product in 2016 is
A) $185 billion. B) $215 billion. C) $220 billion. D) $245 billion.
The interest paid on corporate bonds is not subject to federal taxes.
Answer the following statement true (T) or false (F)
____ is the subjective measure of the physical and mental satisfaction that is anticipated from consumption
a. Demand b. Supply c. Recognition d. Utility e. Cognition