Which of the following is true of the relationship between disposable income and consumption?
a. Disposable income and consumption are both dependent variables
b. Disposable income and consumption are both independent variables.
c. Disposable income is the dependent variable and consumption is the independent variable.
d. Consumption is the dependent variable and disposable income is the independent variable.
e. Disposable income and consumption are negatively related to each other.
d
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When individuals use all available information about an economic variable to make a decision, expectations are
A) rational. B) overestimates of reality. C) underestimates of reality. D) accurate.
Suppose the major soft drink companies develop vending machines for canned and bottled drinks that can determine your maximum willingness-to-pay for a drink, and the machine charges you that price when you purchase a drink
If this were possible, the consumer surplus in the vended soft drink market would be: A) positive because consumer surplus equals consumer expenditures in this case. B) positive because the market demand curve is perfectly inelastic in this case. C) negative because people are not actually willing to pay their maximum value for the product. D) zero because all surplus value is captured by the seller.
Explain the concept of utility
Which of the following does not contribute to increased worker productivity?
a. technological advances b. increased capital formation c. improvements in workers' skills d. increased labor supply