Refer to the information provided in Table 22.3 below to answer the question(s) that follow. Table 22.3 PointAggregate Income (Y)Aggregate Consumption (C) A 15 19 B 30 23 C 45 27 D 60 31 E 75 35 F 90 39The data in the table was used to estimate the following consumption function: C = 20 + 0.2YRefer to Table 22.3. The error for point C is equal to
A. -2.
B. 0.
C. +2.
D. +4.
Answer: C
You might also like to view...
If a middle-eastern war reduced the quantity of crude petroleum available for export to Japan and the United States by 40%, and the U.S. government responded by imposing price ceilings on petroleum,
A) more petroleum would be available for Japanese users. B) the demand for crude petroleum in the U.S. would increase. C) the demand for natural gas in the U.S. would decline. D) the price of petroleum would rise even higher in Japan. E) all of the above would be likely to result.
The fact that the fourth plate from the "All You Can Eat Country Buffet" generated more satisfaction than the fifth plate is an example of
A) increasing marginal utility. B) diminishing marginal utility. C) diminishing total utility. D) the "paradox of value."
Suppose that Makemoney Movies produces two new films — The Hulk and The Piano. Makemoney offers theaters the two films together at a single price but will not supply the movies separately. What do economists call this business practice?
a. predatory pricing b. resale price maintenance c. tying d. leverage
Society can operate on the production possibilities curve only if it has achieved efficiency.
a. true b. false