What is true of disposable income?
What will be an ideal response?
It equals consumption expenditures plus saving.
You might also like to view...
When Bank of America finances your purchase of a new car, you are
A) borrowing in the stock market. B) lending in the bond market. C) lending in the capital market. D) borrowing in the loan market. E) borrowing in the bond market.
The above figure shows the U.S. market for flip-flops. With international trade, the United States imports ________ flip-flops
A) 400,000 B) 0 because the United States exports flip-flops C) 700,000 D) 300,000 E) 500,000
Pareto improvements that require the use of side payments typically are easy to coordinate and tend to enhance economic efficiency
a. True b. False
Incentive compensation schemes are more likely to be value enhancing if:
A. they can accurately account for the dysfunctional behavior of the principal. B. they can minimize the administrative cost borne by the agent. C. they are designed to limit the agent's gaming behavior. D. they are designed to minimize the principal's average cost.