The relationship between consumer spending and income is known as the
A) rate of individual wealth. B) consumption function.
C) rate of income. D) inflation rate.
B
You might also like to view...
If movement along a graph causes the value on the vertical axis to rise by 5 units and the value on the horizontal axis to fall by 10 units, the slope of the function is
A. 5 B. ?.5. C. ?2. D. ?72.
Suppose Ed Sike, whom you've met in chapter 8, loses one of his $10 bills. What directly happens to GDP?
A) It increases by ten dollars. B) It decreases by ten dollars. C) It decreases by more than ten dollars due to an unavoidable multiplier process. D) It remains unchanged.
Suppose we advertise up to the point where the last dollar spent on advertising generates an additional dollar of sales revenue (i.e, the marginal revenue of advertising equals one)
If the full marginal cost of advertising is greater than one, then we will generate: A) less output than the profit maximizing level. B) more output than the profit maximizing level. C) the profit maximizing level of output. D) We don't have enough information to answer this question.
What is the primary difference between a mixed strategy and a pure strategy?
A) Pure strategies are always dominated strategies. B) Mixed strategies call for randomizing over possible actions, pure strategies do not. C) Pure strategies are much more common than mixed strategies. D) Mixed strategies are not optimal whereas pure strategies are.