Dissaving means:
A. the same thing as disinvesting.
B. that households are spending more than their current incomes.
C. that saving and investment are equal.
D. that disposable income is less than zero.
B. that households are spending more than their current incomes.
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Which of the following is not one of the assumptions of a perfectly competitive market?
A) Better information for producers than consumers. B) Homogeneous product. C) Free entry and exit. D) Large number of buyers and sellers.
All used cars are lemons or peaches. Owners know whether or not their car is a lemon, but buyers do not; that is, the quality of a car is private information. There are many more buyers than sellers
Buyers value a peach at $4,000 and a lemon at $200; owners value a peach at $3,000 and a lemon at $100 . Owners can have their cars inspected for $100 . If they do have their car inspected, they will receive a certificate that shows whether the car is a lemon or a peach. Show that owners of peaches will have their cars inspected and will sell those cars for $4,000 . Show also that the owners of lemons will not obtain a certificate and will sell their cars for $200 .
In the consumption function C = a + c(Y - T), "autonomous consumption" appears as
A) a. B) c. C) cY. D) -cT. E) c(Y - T).
A tax of $1 on sellers always increases the equilibrium price by $1
a. True b. False Indicate whether the statement is true or false