Historical data depicted on a scatter diagram show that consumer spending and disposable income
a. converge as income grows.
b. generally move together.
c. diverge as income grows.
d. show no clear relationship.
b
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A $100 bill is a
A) commodity money. B) fiat money. C) representative commodity money. D) partially representative commodity money.
Underwriting involves
A) insuring the life or health of individuals. B) guaranteeing a price for new capital to the issuing firm. C) selling stock more cheaply than conventional stockbrokers. D) issuing stock and using the proceeds to buy bonds.
The graphs above show the production possibilities curves for the U.S. and Canada, which both produce cars and wheat. Based on the graphs above, which of the following is true?
A) The U.S. has an absolute advantage in both goods. B) Canada has an absolute advantage in cars. C) The U.S. has a comparative advantage in cars. D) The U.S. has a comparative advantage in wheat.
Why might a country seek to protect an industry, even when the benefits are greatly outweighed by the cost?
What will be an ideal response?