For any given consumption function, autonomous consumption is equal to the level of consumption associated with:
a. negative disposable income.
b. positive disposable income.
c. zero disposable income.
d. unstable disposable income.
c
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In the market for DVDs, 500,000 DVDs a month are available. The value people place on the 500,000th DVD a month is less than the marginal social cost of producing it. Resource use ________
A) is efficient B) is inefficient C) would be more efficient if people firms would produce more DVDs D) would be more efficient if people would buy more DVDs
If governments promise to bail out the financial system in the event of a crisis, this creates a moral hazard problem. Describe this problem
What will be an ideal response?
Suppose y = k1/2, total factor productivity is constant and equal to 1, s = 0.40, and d = 0.10. When the economy reaches the steady state, real GDP per worker is ________
A) $2 B) $4 C) $8 D) $16
Refer to the information provided in Figure 9.1 below to answer the question(s) that follow. 
Figure 9.1Refer to Figure 9.1. This farmer will earn ________ economic profit if the price is $10.
A. -$2. B. $0. C. $2. D. $7.