According to the relationship represented by the consumption function, governments can indirectly decrease consumption spending by
a. increasing taxes.
b. decreasing transfers.
c. decreasing taxes.
d. decreasing government spending.
a
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Specialization occurs when each individual, firm, or country:
A) produces only a few specific goods and relies on trade for the other goods and services it needs. B) is self-sufficient and produces all the goods and services it needs, without relying on imports. C) produces only those goods for which it has a higher opportunity cost of producing than the opportunity cost in other nations. D) produces only those goods which are in demand in the global market and allow for high rates of profitability.
If the price of a Domino's pizza decreases while the price of a Pizza Hut pizza is unchanged, then probably the demand for Pizza Hut pizza:
A. increases as some people switch from Pizza Hut to Domino's. B. decreases as some people switch from Pizza Hut to Domino's. C. remains unchanged. D. will depend on what happens to the supply of Pizza Hut pizza.
Describe the differences between capitalism and socialism
If exports rose and imports fell, a. AD would decrease
b. AD would increase. c. AD would be unaffected. d. AD could either increase or decrease.