Given the consumption function C = $500 billion + 0.80Y, an increase in disposable income from $6,000 billion to $7,000 billion will cause consumption to increase by:
A. $800 billion.
B. $1,000 billion.
C. $1,300 billion.
D. $1,500 billion.
Answer: A
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If the wages of loggers went up, the supply of logs would:
a. fall, thereby shifting to the right. b. fall, thereby shifting to the left. c. rise, thereby shifting to the right. d. rise, thereby shifting to the left.
Which of the following scenarios best demonstrates Say's law?
A. Nandini plays the piano at a restaurant, and her income is based solely on voluntary donations. She never lets her demand for goods and services determine how long she plays the piano. B. Professor Mackowski teaches economics at a university and receives a monthly paycheck. Each month he spends half his paycheck and saves the rest in his piggy bank under his bed. C. Farmer Perk grows strawberries on his farm. As he grows them, he decides to buy more goods if he sells more strawberries than he expected.
The mid-1990s political debate on welfare resulted in Congress legislating in August of 1996,
a. the Taft-Hartley Act b. the Small Business Job Protection Act c. Graham-Rudman-Hollings d. the Wilmot Proviso e. the Personal Responsibility and Work Opportunity Reconciliation Act
The proportion of total income received by a particular group is called the group's
A. Income share. B. Gini coefficient. C. Functional distribution of income. D. Market share.