When a household's disposable income falls to zero, what do we expect will happen?
A. The household's consumption spending also falls to zero.
B. The household will maintain a positive level of saving.
C. Consumption will fall to the level of autonomous consumption.
D. The household will maintain its previous level of consumption.
Answer: C
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When two variables move in the same direction, they are said to be:
A) unitary correlated. B) uncorrelated. C) positively correlated. D) a negatively correlated.
By 1967, how did television coverage of the war in Vietnam influence the American public's opinion about this conflict?
A) Scenes of human suffering and devastation convinced the public that the Johnson administration's moral justification of U.S. involvement in Vietnam as a defense of freedom and democracy was no longer true. B) Americans were angered at the Communist victories of the North Vietnamese troops and Vietcong guerrillas and this led them to support the war as a struggle to defeat Communism. C) Americans continued to put their trust in President Johnson and were convinced that the end of the war was in sight. D) Network news largely ignored the conflict in Vietnam, so the American public was unaware of what was taking place there.
Farmers can choose to produce eggs or milk. If there is an increase in the price of milk then what will be the effect in the egg market?
A. The quantity of eggs demanded will increase. B. Egg demand will decrease. C. Egg supply will increase. D. Egg supply will decrease.
At which point is society producing some of each type of structure but still producing inefficiently? (See Figure 1.1.)
A. A. B. B. C. C. D. D.