At a level of real disposable income of 0, consumption is $1000. Then
A. saving equals $1000.
B. saving equals -$1000.
C. savings equal -$1000.
D. saving equals 0.
Answer: B
You might also like to view...
Suppose that at the current level of output, Pat's Hats has fixed costs of $500, variable costs of $1,000 . and $2,000 in total revenue. Which of the following is true?
a. Profit is currently $500 and, in the long run, it will be $1,000 because there will be no fixed costs. b. Profit is currently $500 and, in the long run, it will be $1,500 because there will be no variable costs. c. Profit is currently $500. d. Profit is currently $500, and Pat's Hats will want to decrease its plant size in the long run to lower its fixed costs. e. Pat's Hats will continue to operate as long as revenue is greater than $500.
If the average price level in 1991 was 1.20 relative to the base year in 1986, then a dollar in 1991 bought 20 percent more goods and services than a dollar in 1986
a. True b. False Indicate whether the statement is true or false
Which of the following is not a weakness of fiscal policy?
What will be an ideal response?
Total cost is calculated as
A. the sum of all the firm's explicit costs. B. the sum of average fixed cost and average variable cost. C. the sum of total fixed cost and total variable cost. D. the product of average total cost and price.