Which one of the following will shift the consumption function downward?
a. An increase in disposable income.
b. A decrease in disposable income.
c. Legislation making credit harder to obtain.
d. Lower tax rates.
e. A technological breakthrough.
c
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The political process is more likely to serve the interests of individuals whose preferences are in the middle, rather than individuals with preferences that are much to the left or right of the political center
This statement is best explained by which of the following? A) logrolling B) the Arrow impossibility theorem C) the voting paradox D) the median voter theorem
In 2010 President Obama proposed more generous tax write-offs for businesses that invest in additional equipment in order to stimulate investment spending
a. True b. False Indicate whether the statement is true or false
Rent control may lead to lower rents for those who find housing, but the quality of the housing may also be lower
a. True b. False Indicate whether the statement is true or false
Implicit costs are costs that:
A. represent forgone opportunities. B. do not depend on the quantity of output produced. C. require a firm to spend money. D. depend on the quantity of output produced.