There is substantial evidence that people base their consumption decisions more on their current income than on the average income they expect to receive over a long period of time
a. True
b. False
Indicate whether the statement is true or false
False
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Consumption spending includes spending on:
A. durables, nondurables, and services. B. goods and services by federal, state, and local governments. C. capital goods, residential housing, and changes in inventories. D. stocks, bonds, and other financial instruments.
If the world price of coffee is lower than Colombia's domestic price of coffee without trade, then Colombia
a. should import coffee. b. has a comparative advantage in coffee. c. should produce just enough coffee to satisfy domestic demand. d. should produce no coffee domestically.
If consumer incomes go up and you are analyzing the market for Harley Davidson motorcycles, the effect on the demand for motorcycles, ceteris paribus, will be
a. an upward movement along the demand curve for motorcycles. b. a downward movement along the demand curve for motorcycles. c. a rightward shift in the demand curve for motorcycles. d. a leftward shift in the demand curve for motorcycles.
Externalities are direct benefits or costs accruing to individuals or groups of individuals who were not participants in the activity.
Answer the following statement true (T) or false (F)