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
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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?
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
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.
What are floating exchange rates?