When disposable income is zero, the level of induced consumption is

A. negative.
B. zero.
C. positive.
D. indeterminate.


B. zero.

Economics

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If the government raised taxes and reduced government spending in order to reduce the budget deficit, monetary policy could accommodate this policy by

a. increasing money demand. b. increasing money supply. c. decreasing money supply. d. increase unemployment insurance.

Economics

In the short run in a perfectly competitive industry,

a. each firm's supply curve is horizontal, but the market supply curve is upward sloping b. the marginal cost curve equals the marginal revenue curve c. the market supply curve is upward sloping because each firm's supply curve is upward sloping d. the market demand curve is the sum of each consumer's marginal revenue curve e. each firm earns only a normal profit

Economics

Who is included in the labor force by the Bureau of Labor Statistics?

a. Dia, an unpaid homemaker not looking for other work b. Kevin, a full-time student not looking for work c. Sarah, who does not have a job but is looking for work d. None of the above is correct.

Economics

Who ultimately benefits from price supports in agriculture?

A. exporters B. grocery store owners C. consumers D. farmers

Economics