The fewer alternative uses a resource has,
a. the greater the proportion of its earnings that is economic rent
b. the smaller the proportion of its earnings that is economic rent
c. the more elastic its supply
d. the more elastic its demand
e. the less elastic its supply
A
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Real consumption is a function of real disposable income, but the simple Keynesian model uses real GDP instead of real disposable income. This is appropriate since
A) we cannot measure either exactly and the purpose of the exercise is theoretical only. B) real disposable income tends to move proportionately with real GDP. C) real disposable income is a fixed percentage of real GDP. D) real GDP is a fixed percentage of real disposable income.
Equilibrium in the goods market occurs where
A) real GDP equals nominal GDP. B) aggregate expenditure equals autonomous consumption. C) autonomous consumption equals induced consumption. D) aggregate expenditure equals real GDP.
Evidence suggests that financial deepening is of greatest benefit to ________
A) industries that are highly dependent on external sources of funds B) family-owned enterprises C) established firms, rather than new firms D) child workers
The incidence of absolute poverty is reduced by
A) annual recalculations of the poverty line. B) government welfare programs. C) economic growth. D) the size of the budget deficit.