If a firm produces nothing, which of the following costs will be zero?
a. total cost
b. fixed cost
c. opportunity cost
d. variable cost
d
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Identify the correct statement
a. Autonomous consumption equals saving when disposable income is equal to zero. b. Saving is equal to consumption when autonomous consumption is zero. c. The savings function always has a positive intercept when autonomous consumption is positive. d. The consumption and saving function intersect each other when disposable income is zero. e. Autonomous consumption is positive even when disposable income is zero.
The multiplier will be smaller, other things being equal: a. the smaller the fraction of each dollar earned that goes to taxes
b. the larger the MPC. c. the smaller the fraction of each dollar of disposable income that goes to saving. d. None of the above are true.
If the quantity demanded of peanut butter falls by 12% when income rises by 10%, then peanut butter is:
A. an inferior good. B. a normal good. C. a necessity D. both an inferior good and a necessity
Gross domestic product calculations count only final goods and services because
A) counting all goods and services would lead to double-counting of many activities. B) these are the only goods and services that are purchased in an economy. C) one cannot calculate the quantities of intermediate goods produced. D) it is difficult to measure the prices of intermediate goods produced.