An increase in individual income taxes ________ disposable income, which ________ consumption spending
A) decreases; increases B) increases; increases
C) decreases; decreases D) increases; decreases
C
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The assertion that income accrues to people as a consequence of interactions among suppliers and demanders
A) amounts to an endorsement of the existing system. B) amounts to an endorsement of the pattern of income distribution. C) ignores the fact that the interactions are often unfair. D) offers a way of approaching the issue of income distribution.
An increase in human capital
a. is of secondary importance to economic growth compared to physical capital. b. causes the production function to shift downward and become flatter. c. causes the production function to shift upward. d. causes the production function to shift downward. e. can be separated from labor.
Many economists thought the Fed should have lowered the federal funds rate less aggressively in late 2007 and throughout 2008
a. True b. False
According to the accompanying table, Julia has the absolute advantage in making: Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes
A. both pies and cakes. B. neither pies nor cakes. C. cakes. D. pies.