Suppose a person calculates his permanent income by adaptive expectations. Last year's permanent income was 54,000, this year's actual income is 44,000, j = 0.20, and k = 0.82. What is his consumption expenditure this year?
A) 34,840
B) 43,472
C) 36,784
D) 42,640
E) 37,720
D
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The statement, "John buys more of good X as his income increases, Ceteris paribus," means:
a. John's income is being held constant. b. John's purchases of good X are being held constant. c. John's income and purchases of this good are being held constant. d. the price of this good is being allowed to change.
The In The News article "Tesla Banks on Gigafactory" says that
A. The new plant will likely result in diseconomies of scale. B. The plan to build a gigafactory is a short-run production decision. C. The investment will be a variable expense. D. Teslas plan is a long-run production decision, and the company plans to enjoy economies of scale.
If the infant industry argument is used to protect an industry that has already matured, then
A) consumers lose because they will pay a price for a product that is above the world price. B) consumers lose because they will pay a price for a product, which is less than the world price. C) stockholders lose because the firm cannot compete with other firms. D) no one loses.
The following national income data are in billions of dollars
Refer to the above data. Disposable income in this economy is:
A.
$611 billion
B.
$659 billion
C.
$667 billion
D.
$686 billion