An increase in taxes will cause the consumption schedule to
A. shift upward.
B. shift downward.
C. remain fixed as the economy moves upward along the schedule.
D. remain fixed as the economy moves downward along the schedule.
Answer: B
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The total output produced by a firm divided by the quantity of workers employed by the firm is the definition of
A) the division of labor. B) the average cost of production. C) the average product of labor. D) the marginal product of labor.
The wealth effect explains the:
A. negative relationship that exists between consumer spending and overall price level. B. positive relationship that exists between consumer spending and overall price level. C. negative relationship that exists between consumer spending and overall asset valuation. D. positive relationship that exists between consumer spending and overall asset valuation.
The value of an investment in an index fund depends on
a. the earnings estimate for the major index constituent. b. the average performance of all mutual funds. c. what happens to the prices of all stocks in that index. d. the specific stock selection practices employed by the fund manager.
Modern macroeconomics
A. does not do well explaining the reasons for growth B. focuses on theories of firm entry and exit from the market C. has eliminated poverty D. can be defined as the study of money