Historical data depicted on a scatter diagram show that consumer spending and disposable income

A. converge as income grows.
B. generally move together.
C. diverge as income grows.
D. show no clear relationship.


Answer: B

Economics

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Labor is available at a wage of $10. The last worker hired by Cal’s Corn Farm added 20 ears of corn, which Cal has priced at four ears for $1. What advice would you give Cal?

What will be an ideal response?

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If the marginal product of the second worker hired by a firm is 14 units and the price of the tenth unit of output is $7, then the marginal revenue product

a. of the second worker is $98, regardless of the structure of the product market b. of the second worker is $98 if the firm is a price searcher in the product market c. of the second worker is $98 if the product market is perfectly competitive d. of the tenth worker is $98 if the product market is perfectly competitive e. of the tenth worker is $98 if the firm is a price searcher in the product market

Economics

Government purchases, as a component of GDP include all except:

A. goods and services bought by all levels of government. B. both consumption- and investment-type goods bought by the government. C. include services the government pays for. D. goods purchased by government from foreign countries.

Economics

What are floating exchange rates?

Economics