The consumption function illustrates that:
a. saving increases as disposable income decreases.
b. consumption increases as saving increases.
c. consumption increases as disposable income increases.
d. consumption increases as disposable income decreases.
e. consumption increases as investment increases.
c
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A large majority of economists favor eliminating the minimum wage
a. True b. False Indicate whether the statement is true or false
To which of the problems in the construction of the CPI is the invention of pocket-sized computers most relevant?
a. substitution bias b. introduction of new goods c. unmeasured quality change d. income bias
If a country has Y > C + I + G, then it has
a. positive net capital outflow and positive net exports. b. positive net capital outflow and negative net exports. c. negative net capital outflow and positive net exports. d. negative net capital outflow and negative net exports.
When the occupational choices of women or minorities are restricted, this results in:
A. Lower wages for these groups, but has no effect on the efficient allocation of labor resources B. Lower wages for these groups, but more efficient allocation of labor resources C. Lower wages for these groups and less efficient allocation of labor resources D. Higher wages for these groups and more efficient allocation of labor resources