At a level of real disposable income of $1,000, suppose consumption is $2,000. Given this information, we know with certainty that saving equals
A) $2,000.
B) $0.
C) -$1,000.
D) -$2,000.
C
You might also like to view...
Compare the consumer surplus in a perfect competition with that of a single-price monopoly and with a price-discriminating monopoly
What will be an ideal response?
Marginal revenue product is obtained by multiplying the price of the product by the marginal resource cost
a. True b. False
Wheat is produced in a perfectly competitive market. Market demand for wheat increases. This will cause the individual wheat farmer's marginal revenue to ________ and their profit-maximizing level of output to ________.
A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decrease
Suppose that a firm produces 200,000 units a year and sells them all for $10 each. The explicit costs of production are $1,500,000 and the implicit costs of production are $300,000. The firm earns an accounting profit of:
A. $500,000 and an economic profit of $200,000 B. $400,000 and an economic profit of $200,000 C. $300,000 and an economic profit of $400,000 D. $200,000 and an economic profit of $500,000