The consumption function is the relationship between
A. real consumption spending and real saving.
B. real consumption spending and real taxes.
C. real consumption spending and investment spending.
D. real consumption spending and real disposable income.
Answer: D
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If finding the last stamp to complete your collection makes you happier than finding the first, then:
a. marginal utility is zero. b. marginal utility is negative. c. total utility is decreasing. d. total utility is constant. e. marginal utility is not diminishing.
The price elasticity of supply measures the responsiveness of quantity supplied to a change in ____________.
a. quantity demanded. b. demand c. price. d. supply.
Which of the following is NOT an automatic stabilizer?
A. A change in the tax rate to fight a recession. B. A decrease in tax collections due to a recession. C. Decreased unemployment benefits as the economy expands. D. Increased public assistance payments during a recession.
The change in total cost that results from the production of one additional unit is called:
A. marginal revenue. B. average variable cost. C. marginal cost. D. average total cost.