Disposable income is defined to be:
A. total income plus taxes.
B. total income minus depreciation.
C. total income minus taxes.
D. All of these are true.
Answer: C
You might also like to view...
If ________, total efficiency units of labor will increase
A) firms hire more workers B) the number of retired people in an economy increases C) the capital stock of an economy decreases D) the rate of unemployment increases
Suppose the required reserve ratio is 20 percent. If banks are conservative and choose not to loan all of their excess reserves, the real-world deposit multiplier is
A) less than 5. B) equal to 5. C) greater than 5. D) equal to 20.
According to experience, what is the most effective solution to highway congestion?
a) to discount transit passes b) to discourage urban sprawl by subsidizing urban apartment rents c) to build more roads d) to set a price for access to roads, which is paid by those who use them
?Long-run equilibrium for a perfectly competitive firm occurs when:
a. ?Marginal cost (MC) = Marginal revenue (MR) = Price (P) > Long-run average cost (LRAC). b. ?Marginal cost (MC) = Marginal revenue (MR) = Average fixed cost (AFC) = Short-run average total cost SRATC. c. ?Marginal cost (MC) = Marginal revenue (MR) = Average fixed cost (AFC) = Long-run average cost (LRAC). d. ?Price (P) = Marginal cost (MC) = Short-run average total cost (SRATC) = Long-run average cost (LRAC). e. ?Price (P) = Marginal revenue (MR) = Long-run average variable cost (LRAVC) = Long-run average cost (LRATC).