The difference between consumption spending and disposable income _
What will be an ideal response?
equal saving
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In economic analysis, any amount of profit earned above zero is considered "above normal" because
A) normally firms are supposed to earn zero profit. B) this would indicate that the firm's revenue exceeded both its accounting and opportunity cost. C) this would indicate that the firm was at least earning a profit equal to its opportunity cost. D) this would indicate that the firm's revenue exceeded its accounting cost.
A local Krispy Kreme doughnut shop reduced the price of its doughnuts from $4 per dozen to $3.50 per dozen, and as a result, the daily sales increased from 300 to 400 dozen. This indicates that the price elasticity of demand for the doughnuts was
a. elastic. b. inelastic. c. of unitary elasticity. d. indeterminate; more information is needed to determine the price elasticity of demand.
Refer to the table below. Marginal utility begins to diminish with the consumption of the:
The table below shows a consumer's utility schedule.
A. Fifth unit
B. Fourth unit
C. Third unit
D. Second unit
Which of the following would increase the incentive of consumers to economize and of producers to provide medical services at economical prices?
a. substitution of catastrophic health insurance plans for low deductible, low co-payment plans b. more reliance on medical savings accounts rather than insurance c. equalization of tax treatment between out-of-pocket medical expenses and employer-provided health insurance d. all of the above