Refer to the above figure. The figure represents the consumption function for a consumer. Point C represents
A) autonomous consumption.
B) positive saving.
C) negative saving.
D) zero saving.
D
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The big-push theory argues that coordination failures may arise because of
a. pecuniary externalities. b. technological externalities. c. lack of human capital. d. all of the above.
If a perfectly competitive firm is facing a situation where the price of its product is lower than the average total cost, which of the following statements is true?
A. Other firms will want to enter the industry because of the economic profits generated by the firm. B. The firm may earn economic profits in the long run if it expands its plant in order to exploit economies of scale. C. The firm may be earning some accounting profits, but less than what it could earn elsewhere. D. The firm is generating a loss, and if things are not expected to improve the firm will leave the industry.
Which would be one of the factors that shift the aggregate demand curve? A change in:
a. Productivity b. Profit expectations on investment projects c. Domestic resource availability d. Prices of imported resources
Assuming plasma TVs are a normal good, an increase in consumer incomes will lead to
A) a rightward shift of the demand curve for plasma TVs. B) a movement upward along the demand curve for plasma TVs. C) a rightward shift of the supply curve for plasma TVs. D) no change of the demand curve for plasma TVs.