Because people consider government bonds to be part of their wealth, they
a. tend to overconsume and undersave
b. tend to oversave and underconsume
c. realize that taxes balance out the interest they earn from these bonds, and therefore do not change their levels of consumption and saving
d. tend to try to buy more bonds because they are safe, interest-bearing assets, and therefore save more and consume less
e. tend to assume that the taxes are also assessed on their interest income, and therefore oversave and underconsume
A
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Refer to the above figure. Line C in Panel B does NOT represent
A) the equilibrium price. B) average revenue. C) total revenue. D) marginal revenue.
This graph depicts the demand for a normal good. 
A shift from A to B in the graph shown for a normal good might be caused by:
A. a decrease in income. B. an increase in income. C. a decrease in price. D. an increase in price.
Spending money on a new car instead of a used car when you are on a fixed budget is an example of:
A. the incursion of an opportunity cost. B. isolating variables. C. a bad thing to do because you run out of money. D. living on the edge.
In the United States since 1970, the quantity of M1 money people hold as a percentage of GDP has
A) decreased. B) remained constant. C) decreased at first and then increased. D) increased at first and the decreased. E) increased.