When an asset enables people to transfer purchasing power into the future it serves the function of a ________
A) store of value B) unit of account
C) means of deferred payment D) medium of exchange
A
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? In Figure 5-16, Adam is
A. better off at C than at D and able to afford either C or D. B. better off at D than at C but only able to afford C. C. equally well off at C and D and able to afford either C or D. D. equally well off at C and D but only able to afford C.
A change in taxes of a given amount shifts the consumption function vertically by ____ than that amount, because the marginal propensity to consume is ____
a. less; less than 1 b. greater; greater than 1 c. greater; always equal to 1. d. less; equal to zero.
Oligopolies that produce identical products such as steel have
A. no control over the price of their product because of the availability of perfect substitutes. B. no control over the price of their product because of the large number of buyers in the market. C. some control over the price of their product because each firm sells a substantial share of the market. D. some control over the price of their product because of the small number of buyers in the market.
A decrease in a consumer's budget set can be caused by:
A. an increase in prices. B. a decrease in prices. C. an increase in income. D. a change in preferences.