Economists refer to the simple relationship between consumption and income as
a. autonomous consumption
b. the marginal propensity to consume
c. the absolute income hypothesis
d. disposable income
e. the consumption function
E
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The Heckscher-Ohlin, factor-proportions model lends support to the argument that
A) trade tends to worsen the conditions of unskilled labor in rich countries. B) trade tends to worsen the conditions of owners of capital in rich countries. C) trade tends to worsen the conditions of workers in poor countries. D) trade tends to worsen the conditions of workers in rich countries. E) trade tends to worsen the conditions of highly skilled workers in rich countries.
Where should a producer stop devoting more of his spending on labor if initially the MRP of the additional dollar spent on labor is higher than the MRP of the additional unit spent on tools?
a. MRP/$ of additional labor falls below MRP/$ of additional tools. b. MRP/$ of additional capital increases above MRP/$ of additional tools. c. MRP/$ of additional labor becomes equal to MRP/$ of additional tools. d. MRP/$ of the additional labor falls to zero.
Which of the following would a macroeconomist classify as capital?
a. a software program for an accounting firm b. a share of stock in General Electric c. a corporate bond from IBM d. All of the above are types of capital.
Which of the following is an example of barter?
a. A parent gives a teenager a $10 bill in exchange for her babysitting services. b. A homeowner gives an exterminator a check for $50 in exchange for extermination services. c. A barber gives a plumber a haircut in exchange for the plumber fixing the barber's leaky faucet. d. All of the above are examples of barter.