When total production is greater than total expenditures, __________ is produced than households want to buy, which leads to __________ in inventory, which signals firms that they have __________, which causes firms to cut back production
A) less; decreases; underproduced
B) less; increases; overproduced
C) more; decreases; underproduced
D) more; increases; overproduced
D
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When the percentage change in the quantity demanded is less than the percentage change in price, then demand is
A) inelastic. B) unit elastic. C) elastic. D) irrelevant. E) undefined.
The marginal propensity to consume is:
a. the change in income divided by the change in consumption. b. consumption spending divided by income. c. income divided by consumption spending. d. the change in consumption divided by the change in income. e. the change in consumption divided by income.
What is the primary basis for determining the U.S. poverty line?
a. Buying power b. Unemployment rates c. State and federal tax rates d. Median family income
In 2008, the United States was in recession. Which of the following things would you not expect to have happened?
a. increased layoffs and firings. b. a higher rate of bankruptcy. c. increased claims for unemployment insurance. d. increased real GDP.