Keynes asserted that wealth was the most important determinant of consumer spending.
Answer the following statement true (T) or false (F)
False
Keynes believed that disposable income was the most important determinant of consumer spending.
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Suppose a person calculates his permanent income by adaptive expectations. Last year's permanent income was 54,000, this year's actual income is 44,000, j = 0.20, and k = 0.82. What is his consumption expenditure this year?
A) 34,840 B) 43,472 C) 36,784 D) 42,640 E) 37,720
What is one problem with trying to regulate a monopoly's price?
A) The government needs information on the monopoly's marginal cost. B) The government needs information on the price people are willing to pay. C) The government needs to identify which firm is a monopolist. D) Anything that the government does is problematic.
Patent and copyright laws encourage
a. creative activity. b. lower prices due to decreasing average total costs. c. competition among firms. d. All of the above are correct.
Which of the following statements explains the relationship between supply, demand, price, and quantity in this graph?
a. The demand for land does not change with price, but an increase in supply will lower
the price, which can lead to a decrease in the quantity made available by owners.
b. The quantity of land supplied remains the same at any price, but an increase in
demand can increase the price owners receive and result in an increase in the overall
supply.
c. The price of land is determined by the quantity of acres supplied, and the higher the
acreage, the higher the demand and therefore the price paid to land owners.
d. The supply of land does not change with price, but an increase in demand will
increase the price, which can lead to an increase in the quantity made available by
owners.