According to Keynes, planned consumption
A) decreases as disposable income increases.
B) is positively related to real disposable income.
C) is unstable and fluctuates widely with changes in disposable income.
D) is indirectly related to the interest rate.
B
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Refer to Figure 10.1. When each player plays his or her dominant strategy, society is poorer and the payoffs are smaller by ________ units than if each player had played the strategy with the ideal outcome for both the individual players and for the
group as a whole. A) 6 B) 12 C) 18 D) 30
The opportunity cost of holding money is measured by the rate of interest
a. True b. False Indicate whether the statement is true or false
The restaurant market in San Francisco is probably best categorized as: a. perfectly competitive
b. monopolistic. c. monopolistically competitive. d. oligopolistic.
The overall federal tax structure is
a. regressive because the average tax rate of those with low incomes is higher than the rate imposed on those with higher incomes. b. progressive because the average tax rate of those with high incomes is greater than the rate imposed on those with lower incomes. c. flat because the average tax rate is approximately constant across all income brackets. d. progressive for income levels up to approximately $100,000 but regressive for income levels above this figure.