The 45-degree line on a graph relating consumption and income shows:
A. all the points where the MPC is constant.
B. all the points at which saving and income are equal.
C. all the points at which consumption and income are equal.
D. the amounts households will plan to save at each possible level of income.
C. all the points at which consumption and income are equal.
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Unemployment caused by changes in technology is called ________ unemployment
A) structural B) frictional C) techno D) cyclical
When marginal private cost is equal to marginal social cost,
A. the activity in question generates no positive externality. B. the activity in question generates no negative externality. C. all positive externalities have been internalized. D. all negative externalities have been internalized. E. b or d
Consumer surplus
a. is the difference between total willingness to pay and the total amount actually paid. b. guarantees that the market value of a good in money is equal to the total economic value of the good. c. is always negative because of diminishing marginal utility. d. is the total area under a consumer's demand curve.
In a fixed exchange rate system,
A. A balance-of-payments deficit can be corrected by expansionary fiscal and expansionary monetary policies. B. A country can eliminate a surplus of its currency by eliminating its protectionist barriers to trade. C. The capital account surpluses must offset current account deficits. D. Excess demand for a currency is eliminated by using foreign exchange reserves to increase demand.