Exhibit 8-2 Consumption function
As shown in Exhibit 8-2, autonomous consumption is:
A. 0.
B. $2 trillion.
C. $4 trillion.
D. $6 trillion.
Answer: B
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Those individuals 16 years of age and over who are working in a job or actively seeking employment are called:
A) the labor force. B) the employed. C) the unemployed. D) none of the above.
Econville opens up trade with its neighboring countries. This causes the number of sellers of science fiction novels to increase. What happens to the equilibrium price and quantity?
a. Price and quantity both increase. b. Price decreases, and quantity increases. c. Price increases, and quantity decreases. d. Price and quantity both decrease.
What does NOT occur in a fully employed economy?
A. Cyclical unemployment B. Discouraged workers C. Frictional unemployment D. Structural unemployment
Which of the following scenarios was used in the example for consumer surplus?