In the Keynesian income-expenditure graph, total savings at each level of national income is indicated by
a. the vertical distance between the consumption function and the 45-degree line.
b. the slope of the consumption function.
c. the horizontal distance between the consumption function and the 45-degree line.
d. the slope of the saving function.
a. the vertical distance between the consumption function and the 45-degree line.
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Economics is best defined as
A) how people make money and profits in the stock market. B) making choices from an unlimited supply of goods and services. C) making choices with unlimited wants but facing a scarcity of resources. D) controlling a budget for a household.
According to public choice theory, policymakers
A) act in ways to bring about an equitable distribution of society's wealth. B) act in ways to maximize economic efficiency. C) place the interests of the public above their own self-interest. D) are likely to pursue their own self-interest, even if their self-interest conflicts with the public interest.
A price searcher is any firm that has no control over price and must accept the market price as given
a. True b. False
Crowding out refers to the effect that:
A. C and I are indirectly affected by changes in G. B. C is directly affected by changes in G. C. C and I are directly affected by changes in G. D. C and I are completely unrelated to changes in G.