With a given level of money income, when the price of a product that a consumer buys declines, the purchasing power of your money income
A) decreases.
B) increases.
C) is unchanged.
D) can increase or decreases depending on the goods being consumed.
Answer: B
You might also like to view...
The extent of the decline in output associated with the imposition of an employment tax depends on the
A) slope of the labor supply curve. B) tax rate. C) wage rate. D) slope of the labor demand curve.
The marginal propensity to consume measures the average amount of wealth that a consumer spends in a given period of time
Indicate whether the statement is true or false
Fiscal policy is implemented by
A) the central bank. B) private businesses. C) the Internal Revenue Service. D) the federal government.
Marginal revenue is
a. total revenue minus total cost b. total revenue divided by quantity of output c. the change in total revenue divided by the change in output d. the change in total revenue divided by the change in the quantity of an input used e. economic profit