Which of the following is true of the consumption function?
a. It becomes steeper as the income tax rate decreases
b. It becomes flatter as the income tax rate decreases.
c. It shifts upward as the marginal propensity to save increases.
d. It shifts downward as the expected future income increases.
a
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The wage gap between high school and college graduates can be explained, other things the same, by ________
A) a greater increase in the demand for high school educated labor than college-educated labor B) a greater increase in the supply of college-educated labor than high school educated labor C) a greater increase in the demand for high school educated labor than in the supply of high school educated labor D) a greater increase in the demand for college-educated labor than high school educated labor
Demand is based on:
a. desires, regardless of ability to pay. b. needs and wants, and the ability to pay. c. what supplies can provide. d. government calculations.
While specialization and exchange were very important to Adam Smith in 1776, they have largely lost their importance in the 21st century
a. True b. False Indicate whether the statement is true or false
After graduating from college, it takes Kim several months to find a professional job. This is an example of which type of unemployment?
A. Structural unemployment B. Seasonal unemployment C. Cyclical unemployment D. Frictional unemployment