Historical data representing consumption and disposable income reveals that
a. during the 1930s, U.S. saving was at a high level.
b. U.S. citizens increased saving during World War II.
c. there is no systematic relationship between the two.
d. consumption rises faster than disposable income during recessions.
b
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Which one of the following describes the current state of economic development in the United States?
A) The United States is running out of natural resources, and therefore it will soon experience a drop in the rate of economic growth. B) Employment is declining in the manufacturing sector and growing in the service sector. C) Employment is declining in the manufacturing sector and growing in the agricultural sector. D) The lack of well-defined property rights in the United States means that entrepreneurs do not expect to capture the benefits of innovations they bring to the marketplace.
If the marginal cost is less than average total cost, average total cost will decrease
a. True b. False Indicate whether the statement is true or false
The marginal revenue product of capital curve is downward sloping due to the law of diminishing returns
Indicate whether the statement is true or false
The primary tool of fiscal policy is
a. the money supply. b. the stock market. c. the federal budget. d. regulation of the bond market.