Autonomous consumption is consumption that:
a. varies directly with disposable income.
b. varies inversely with disposable income.
c. is independent of the level of disposable income.
d. is constant at first and then varies with disposable income.
c
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When externalities are present,
a. suppliers will refuse to produce desired goods and services. b. this indicates that property rights are well-defined and enforced. c. competitive market outcomes may be inconsistent with ideal economic efficiency. d. competitive markets will generally achieve ideal economic efficiency.
If the price of inputs falls and the level of consumer indebtedness rises:
a. Price index falls, and real GDP falls. b. Price index falls, and the change in real GDP is uncertain. c. The change in price index is uncertain, and real GDP rises. d. The change in price index is uncertain, and real GDP falls. e. Neither the price index nor real GDP changes.
Assume that the total utilities for the fifth and sixth units of a good consumed are 83 and 97, respectively. The marginal utility for the sixth unit is:
a. -14 b. 14 c. 83 d. 97
Why might someone be willing to pay more than the fundamental value for a stock?