When the consumption schedule is plotted on a graph:
A. Consumption is on the horizontal axis and saving is on the vertical axis
B. Consumption is on the vertical axis and saving is on the horizontal axis
C. Consumption is on the horizontal axis and disposable income is on the vertical axis
D. Consumption is on the vertical axis and disposable income is on the horizontal axis
D. Consumption is on the vertical axis and disposable income is on the horizontal axis
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The fact of increasing opportunity cost when moving on the PPF means that
A) to increase the production of one product requires larger and larger sacrifices of the other good. B) to decrease the production of one product requires smaller and smaller sacrifices of the other good. C) to increase the production of one product requires smaller and smaller sacrifices of the other good. D) when the government forces a movement from one point on the PPF to another point, no production is lost. E) the PPF will be a negatively sloped straight line.
Hank requires 1 hour to cut the grass and 3 hours to clean the house. His sister Holly requires 1 hour to cut the grass and 4 hours to clean the house. Which of the following statements is true?
A) Hank has a comparative advantage in both cutting the grass and cleaning the house. B) Hank and Holly both have a comparative advantage in cutting the grass. C) Hank has a lower opportunity cost of cutting the grass. D) Hank has an absolute advantage in both cutting the grass and cleaning the house. E) Holly has a comparative advantage in cutting the grass.
Which of the following statements best describes Social Security benefits?
a. Since the passage of the Social Security Indexing Act of 1972, the level of Social Security benefits increases each year along with the Producer Price Index. b. Since the passage of the Social Security Indexing Act of 1972, the level of Social Security benefits increases each year along with the Consumer Price Index. c. Since the passage of the Social Security Indexing Act of 1972, the level of Social Security benefits increases at a fixed percentage each year. d. Since the passage of the Social Security Indexing Act of 1972, the level of Social Security benefits increases based on the Prime Rate.
If the average variable cost of the fifth hat is $30, then the total variable cost of five hats is
A. $6. B. $150. C. $1,800. D. indeterminate from this information.