Use the following consumption schedule to answer the next question. 
Disposable income equals consumption at
A. point D.
B. point C.
C. point G.
D. point A.
Answer: A
You might also like to view...
Because a monopsony is the only buyer in a particular market, the
A) supply of labor to the monopsony is perfectly elastic. B) supply of labor to the monopsony is perfectly inelastic. C) supply of labor curve faced by the monopsony is upward sloping. D) supply of labor curve faced by the monopsony is downward sloping.
The Arrow impossibility theorem explains
A) why government regulation of private markets will always result in a reduction in economic efficiency in these markets. B) why voters are always rationally ignorant. C) why there is no system of voting that will consistently represent the underlying preferences of voters. D) why it is not possible to provide the economically efficient amount of any public good.
The stability of consumption over the business cycle and the ability of changes in the real interest rate to redirect aggregate demand indicate that
a. government policy can improve the performance of the economy. b. market economies are inherently unstable. c. a market economy has a self-correcting mechanism that will help guide it toward full employment. d. recessions will be lengthy, and high rates of unemployment will persist for a period of time even after the economy recovers.
The ________ multiplier is smaller than the ________ multiplier.
A. government spending; closed economy B. money; government spending C. closed economy; money D. open economy; closed economy