Refer to the above figure. If real disposable income is less than $5,000, then saving is
A) negative.
B) 0.
C) positive.
D) none of the above: cannot be determined with the given information.
A
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In the above figure, what is total revenue at the profit-maximizing point?
A) $182 B) $126 C) $170 D) $176
If in the past Congress had taken additional actions to make saving more rewarding, then today it is likely that the equilibrium interest rate
a. and the equilibrium quantity of loanable funds both would be lower. b. and the equilibrium quantity of loanable funds both would be higher. c. would be higher and the equilibrium quantity of loanable funds would be lower. d. would be lower and the equilibrium quantity of loanable funds would be higher.
The equality-efficiency trade-off refers to:
A.the conflict between risk averters and risk-takers.
B.the willingness of Congress to abandon existing welfare programs in favor of a comprehensive plan to increase education and training for low-income persons.
C.possible conflicts between the goals of economic efficiency and greater income equality.
D.the difference between the goals of income equality and equality of economic opportunity.
When there is a resource for which property rights are NOT well defined and there is a difference between private costs and social costs, then all but which of the following is a way to close the difference?
A. subsidization B. taxation C. regulation D. the free market system