Economists expect the relationship between consumption and disposable income to be
A. unpredictable.
B. transitory.
C. fixed.
D. inverse
E. stable.
Answer: E
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According to the law of diminishing marginal utility, the fifth pair of gloves that Mary receives for Christmas makes her
a. as happy as she was while receiving the first pair b. less happy than she was while receiving the first pair c. more happy than she was while receiving the first pair d. consider that fifth pair as having zero marginal utility e. total utility decrease
In order to use schooling as a signal,
A. firms must be able to easily verify each worker's amount of schooling. B. some people must choose to not complete schooling. C. the signal must be costlier for low-skilled workers than for high-skilled workers. D. the cost of purchasing the signal must not be so costly that high-skilled workers do not value obtaining it. E. All of these are required for schooling to serve as a signal.
Which of the following will shift the aggregate demand curve to the left?
A. Foreign economies fall into recession, reducing their demand for domestic exports. B. Consumers become optimistic about the future. C. The government increases spending on education. D. Income taxes are lowered.
International trade
A) harms consumers but helps exporting firms. B) helps consumers but harms exporting firms and their workers. C) helps consumers but hurts firms that are less efficient than their foreign competitors. D) helps consumers and firms that compete with their foreign competitors.