When disposable income is zero, consumption is also zero
a. True
b. False
Indicate whether the statement is true or false
False
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An example of a "missing" market would be:
A. the market to buy and sell children for adoption. B. the market to buy and sell a kidney. C. the market to buy and sell dates for a Friday night. D. All of these markets are missing.
If an unregulated electric company is a monopolist, faces demand of Q = 100 - 50P, and has a constant marginal cost of 1, the profit-maximizing price is
a. 0 b. 1 c. 1.5 d. 2
Which of the following statements best reflects behavioral economists' views on self-interest versus the interests of others?
A. Self-interest dominates human behavior; even seemingly selfless behavior is driven by self-interest. B. Most people care so deeply about others that self-interest is a minor consideration in their decision making. C. The system is most efficient when people focus solely on their self-interest and allow the invisible hand to work out what is best for society. D. People are always self-interested to a degree, but their behavior is also affected by moral and ethical considerations.
Refer to the information provided in Figure 23.11 below to answer the question(s) that follow.
Figure 23.11Refer to Figure 23.11. The equation for the aggregate expenditure function AE0 is
A. AE0 = 50 + 0.6Y. B. AE0 = 50 + 0.4Y. C. AE0 = 80 + 0.6Y. D. AE0 = 50 + 0.75Y.