A decline in disposable income:
A. increases consumption by moving upward along a specific consumption schedule.
B. decreases consumption because it shifts the consumption schedule downward.
C. decreases consumption by moving downward along a specific consumption schedule.
D. increases consumption because it shifts the consumption schedule upward.
C. decreases consumption by moving downward along a specific consumption schedule.
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The long-run average cost curve is U-shaped because of which of the following?
A) decreasing marginal returns as more labor is hired B) constant fixed costs as output is increased C) economies and diseconomies of scale D) increasing marginal returns as more labor is hired E) decreasing average fixed costs as output is increased
Contingent contracts
A) are inefficient when monitoring is possible. B) equally divide the risk between principal and agent. C) can be used when monitoring is not reasonably possible. D) put the risk on the principal.
The Phillips curve
a. illustrates the economy's production possibilities b. measures the Fed's willingness to stick with a particular interest rate target c. represents the Fed's choices between inflation and unemployment d. demonstrates the need for a zero inflation rate e. explains the natural rate of unemployment
Evidence of differences in the average wages of black workers compared to white workers
a. does not alone provide conclusive evidence of discrimination. b. clearly indicates differences in productivity between races. c. is seldom used to provide evidence of discriminatory bias. d. clearly indicates discrimination on the basis of race.